NXMH, a Belgium-based investment firm, acquired cryptocurrency exchange Bitstamp in an all-cash deal. The two parties signed on October 25. Neither disclosed the purchase price, but people with knowle
NXMH, a Belgium-based investment firm, acquired cryptocurrency exchange Bitstamp in an all-cash deal. The two parties signed on October 25. Neither disclosed the purchase price, but people with knowledge of the transaction pegged it at $400 million.
Nejc Kodrič, Bitstamp's co-founder and chief executive, confirmed details to Reuters and Fortune on Monday. He said NXMH emerged as the winner from four bidders competing for the exchange after Bitstamp launched a sale process in mid-2017. The parties agreed on terms last December. Regulators took most of 2018 to approve the deal, which grants NXMH an 80% stake.
"The reason why we finally decided to sell the company is a combination of the quality of the buyer, the quality of the offer and the fact that the industry is at a point where consolidation makes sense. A major factor in agreeing to the sale is that the mission, leadership and vision of the company remains the same," Kodrič wrote in a statement.
Kodrič will keep his CEO role and maintains a 10% holding in Bitstamp. Damijan Merlak, the co-founder alongside Kodrič, sold his complete 30% stake and has not worked at the company since 2015.
NXMH serves as the European division of South Korean conglomerate NXC, which also owns Korbit. The two will operate as separate entities but plan on "generating synergies in a number of areas including technology, research and development," according to the announcement.
"We do anticipate that this acquisition will strengthen Bitstamp's positioning for growth, which will provide opportunities to better serve our customers. Customers should not have any concerns about their accounts or changes to the way we operate," Kodrič stated.
Hendrik Ghys, NXMH's investment manager, explained the firm's thinking. "Bitstamp is one of the oldest and most-respected cryptocurrency exchanges and we see positive growth potential as the industry continues to evolve," he said. "We acquired Bitstamp because we see it as a strategic, long-term investment."
Kodrič reflected on the milestone. "We believe this acquisition is a logical evolution in Bitstamp's growth as a company. 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 1,000."
Kodrič and Merlak founded Bitstamp in 2011 as a European alternative to Mt. Gox, which dominated the market at the time. The Luxembourg-based operator now handles the largest volume among cryptocurrency exchanges in the European Union. The platform processes $100 million in daily trades and supports BTC, BCH, ETH, XRP, LTC, USD and EUR. More than 3 million customers have registered accounts.
Bitstamp's value expanded over its history. Reuters reported the exchange at a $60 million valuation in 2016, compared with $39 million in 2014.
