Crypto exchange Huobi Global will sell its entire stake for approx. capital
Huobi Global, which has been China’s top crypto exchange, has mentioned that its founder is now planning to sell its controlling stake to buyout firm About Capital Management (HK) Co.
Huobi has been transforming itself ever since it exited its domestic market after Beijing banned crypto.
Currently, the company is heading towards a takeover by an investment company, About Capital.
According to the statement, after the completion of the transaction, the buyout vehicle of About Capital will control the majority stake of Houbi founder Leon Li.
The company announced today that the transaction has been completed and that the entire stake has been sold to About Capital.
About Capital is a Hong Kong-based fund that was started by Ted Chen. Ted Chen also founded China’s hedge fund giant Greenwoods Asset Management.
According to reports, the founder, Leon Li, was also looking to sell a majority stake of over $1 billion, which was valued at $3 billion. The transaction is for an unknown amount. About Capital is now the controlling shareholder.
Huobi has mentioned that its core operations and business management will not be affected due to this change.
What are the changes that are intended to follow
Following the completion of the deal, About Capital will assist Huobi with further promotion and increase global exposure, along with focusing on other business expansion initiatives.
“After the successful implementation of the initiatives, Huobi Global will be well positioned to provide first-class trading and investment services to international investors.”
About Capital is set to build a global strategic advisory board that will be “led by leading industry figures.”
Not only that, but About Capital has also signed up to other initiatives such as setting up a margin and risk provision fund along with measures to strengthen the stock exchange’s competitiveness.
Huobi Global gained immense popularity, but soon after that, Beijing declared all crypto transactions illegal in 2021.
The parent company, Huobi Group, currently operates an umbrella of crypto-related entities, which also includes its flagship exchange, Huobi Global.
It is a venture capital arm called Huobi Ventures. The second crypto unit also includes a crypto cloud service.
Crypto Platform Huobi’s Agreement with the City of Busan
Huobi Global was the third major cryptocurrency exchange to enter into a blockchain ecosystem development agreement with the South Korean city of Busan.
Huobi has officially announced that their cooperation will help the company carry out extensive research and development, technology and financial support for the Busan Digital Currency Exchange.
In addition, Huobi, the crypto platform, will also provide assistance in hiring blockchain talent for Busan’s local stock exchange.
Huobi Global, a cryptocurrency exchange, has been hit hard by the regulatory change because many of its users are still from China. Huobi has also laid off 30% of its workforce this year due to the loss of revenue from China.
