Key Takeaways
- FTX CEO Sam Bankman-Fried stated immediately that his agency has no plans to amass the crypto trade Huobi.
- That risk was raised on Aug. 12 when Bloomberg instructed Huobi’s founder was promoting his stake.
- Rumors of different FTX acquisitions are circulating elsewhere, although not all of these rumors have substance.
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Main crypto trade FTX isn’t planning to amass Huobi, in keeping with a latest assertion from the corporate’s CEO.
FTX Says It Gained’t Purchase Huobi
FTX says that it doesn’t intend to amass Huobi.
FTX CEO Sam Bankman-Fried denied the rumors on August 29. He tweeted: “Simply to be express as a result of apparently lots of people are saying this…no, we’re not planning to amass Huobi.”
Bankman-Fried didn’t make clear whether or not his agency plans to buy shares in Huobi or in any other case spend money on the corporate.
The now-debunked acquisition would have represented a deal between two main cryptocurrency exchanges. FTX dealt with $1.8 billion in quantity during the last 24 hours, whereas Huobi dealt with $640 million in quantity over the identical interval.
Rumors of the doable buyout started to flow into on August 12. At the moment, Bloomberg instructed that Huobi founder Leon Li had begun to think about promoting his stake within the firm. Li holds 60% stake in Huobi, valued between $2 billion and $3 billion.
That report instructed that varied buyers together with FTX and Justin Solar might purchase majority stake in Huobi.
Although FTX has no intention of buying Huobi, the agency has explored different acquisitions this 12 months. In June, it thought of buying the crypto lending service Celsius, however decided against that plan as a result of Celsius’s poor funds.
In July, FTX prolonged a line of credit score to a different lender, BlockFi. The phrases of that provide give it the choice to amass BlockFi at a variable worth of as much as $240 million. More moderen stories counsel that such a deal might quantity to simply $15 million.
Additionally in July, FTX supplied to amass Voyager Digital’s belongings with out buying the corporate itself. Voyager Digital strongly rejected that provide regardless of accepting an earlier mortgage from FTX.
That very same month, Bloomberg instructed that the corporate was exploring an acquisition of the South Korean trade Bithumb.
None of these supposed acquisition plans have come to fruition. Nonetheless, FTX’s excessive income and standing imply that it’s seemingly exploring giant offers within the trade.
Disclosure: On the time of writing, the creator of this piece owned BTC, ETH, and different cryptocurrencies.
