Belgium-Based NXMH Acquires Bitstamp By An Undisclosed Amount

Bitstamp is the largest cryptocurrency in the whole of the European Union. However, Reuters reports that NXMH acquires Bitstamp in a takeover fully paid for in cash.

Speaking to Reuters, Nejc Kodrič, Bitstamp’s CEO said that the sale was not part of their plan. “The sale wasn’t planned. There was no active effort to go around and solicit buyers,” he said.

During the transaction, Kodrič gets to remain on as the CEO of the company. Also, the CEO will keep a 10% share of the exchange. Despite the sale, Kodrič maintains that nothing will change for the company.

Reuters details that the CEO was unwilling to release details of the transaction, however estimates that the transaction was worth in the region of $400 million.

NXMH is a subsidiary of the South Korean conglomerate NXC. NXC invests in a wide range digital technology startups that have huge potential. At the moment, the conglomerate owns Korbit, Korea’s fourth largest cryptocurrency exchange as well as the gaming giant Nexon.

Asked whether Korbit and Bitstamp will merge, Kodrič clarified that this will not happen. Instead, Bitstamp will work independently just like normal. However, the two companies will collaborate on technology front.

Before acquisition, the major shareholders for the exchange included Nejc Kodric and two others. They include Damian Merlak, another Bitstamp co-founder and Pantera Capital Management, a hedge fund. Particularly, Pantera invested $10m in the exchange in 2014.

After the sale, Kodrič will retain 10% as earlier mentioned while Pantera retains 6% of the stake. However, Merlak sold his entire stake as he has been out of the picture since 2015. NXMH will take over 80% while it is unknown were the remaining 4% stake will belong to.

Speaking to Financial Times, Mr Kodric said the company had undergone “some downscaling in the customer care [department] recently but that it was hiring in roles including project management, development and sales.” Therefore, as NXMH acquires Bitstamp it is likely that the company will seek more skills from the labour market.

The CEO is confident that the rest of 2018 will be profitable. Particularly, Kodric pegs his hopes on the likelihood that Bitcoin found a bottom in the past month. Also, there are robust trading volumes this year, and he expects higher figures in future. Further, the company hopes to expand into Asia in the coming months.