Bitstamp Exchange Acquired By NXMH Investment Company

Investing, Mergers, News | October 29, 2018 By:

The Bitstamp exchange has been acquired by NXMH, a Belgium-based investment company. NXMH is owned by NXC, which also owns South Korean cryptocurrency exchange Korbit, but representatives said Bitstamp and Korbit will continue to operate independently. The two companies plan on generating synergies in a number of areas, including technology, research and development.

The companies are not disclosing the sale price or deal terms.

Bitstamp has apparently been on the market for a while. Earlier this year, a group of South Korean investors were reportedly in discussions to acquire the exchange, and news reports surfaced at one point that the possible buyer was Nexon, the gaming conglomerate, who was said to be interested at a price point around $350 million. The publication also revealed that Bitstamp had been involved in at least one other sale process previously, but did not disclose any further detail.

Nexon CEO Lee Jung-hun denied the rumor and said at the time that the company did not have any plans for a Bitstamp acquisition.

“Bitstamp is one of the oldest and most-respected cryptocurrency exchanges and we see positive growth potential as the industry continues to evolve,” said NXMH Investment Manager Hendrik Ghys. “We acquired Bitstamp because we see it as a strategic, long-term investment.”

“NXMH shares our vision for the future of digital currencies,” said Nejc Kodric, Bitstamp CEO. “We see cryptocurrency continuing to become more mainstream and a part of people’s everyday lives, as well as growing at the institutional level as the gap between the digital and traditional financial worlds keeps shrinking. NXMH’s acquisition of Bitstamp supports our strategic growth initiatives.”

 Kodrič retains a minority ownership interest in Bitstamp and will continue as CEO. He and Damian Merlak founded the company in 2011, which claims it has grown to more than three million registered customers today, making it the EU’s largest digital currency exchange by volume.

Pantera Capital Management LP also owned a portion of Bitstamp after making a $10 million investment in the company in 2014; the company retains a 6 percent stake in Bitstamp.

 “We believe this acquisition is a logical evolution in Bitstamp’s growth as a company,” said Kodrič.“We are now entering a new era in our company’s history, which has come a long way since it began seven years ago in a garage with two laptops and EUR 1000.”