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Cryptocurrency exchange and trading platform Huobi Global announced its take-over by Hong Kong-based investment company About Capital Management.
Upon finalization of the deal, About Capital will have a controlling stake in Huobi, according to the press release.
Huobi, founded in 2013, said that the change of ownership will not have any effect on trading operations and that business will be as usual.
With the strategic takeover, the top-15 exchange by trading volume, according to CoinMarketCap, will use the “injection of sufficient capital in margin and risk provision fund” for its international expansion plans.
Specific terms of the deal were not disclosed.
The last couple of months rumors of Huobi being purchased were doing the rounds. It was said that founder of the exchange, Leon Li, was looking to sell his 60% share for a minimum of $1 billion. Mid-August, Bloomberg claimed that preliminary talks between FTX and Huobi founder Leon Li were underway, however FTX chief Sam Bankman-Fried quickly dismissed the speculation.
Ted Chen, CEO of About Capital, said about the acquisition:
“We are very pleased to complete the transaction. Huobi Global offers the best of breed virtual asset investment services to millions of international users. We believe the virtual asset industry is still in its early stage and there is tremendous upside for long term growth. We are confident that the holistic approach to rebuild Huobi Global as the premier international virtual asset exchange would solidify both the recognition and trust of Huobi’s international users.”
Leon Li, added:
“This transaction marks a new chapter for Huobi Global. Over the past nine years, we have witnessed Huobi’s ascendence into one of the largest virtual asset exchanges in the world. Following Huobi’s exit from the Chinese mainland market in 2021, we have accelerated our globalization push amidst a challenging market environment, which adds to the impetus for Huobi to seek a new shareholding structure with a global vision and international resources. We believe the successful acquisition by About Capital vehicle will contribute to Huobi’s global expansion in both aspects.”