Money

Bitstamp Cryptocurrency Exchange Acquired by NXMH

Luxembourg-based Bitstamp, the 27th highest volume cryptocurrency exchange in the world, was just acquired by NXMH, a Belgium-based investment company.

Bitstamp’s cryptocurrency exchange trades in bitcoin, XRP, Ethereum and bitcoin cash, among other assets. It typically runs on average around $67 million in total trading volume over a 24 hour day, with a total turnover of $100 million daily as well.

The acquiring entity, NXMH, is a subsidiary of NXC Corporation of South Korea. NXC also owns Korbit, a South Korean cryptocurrency exchange.

According to  Nejc Kodrič, CEO of Bitstamp, the company was not actively being shopped when the initial offer came in from NXMH. He said his company accepted the offer both because of the professional nature of the buyer and “the quality of the offer”. Kodrič also said it was good timing anyway, because given the state of the market, consolidation in the cryptocurrency industry “made sense”.

Terms of the deal were not disclosed. Kodrič did say that under the acquisition agreement Bitstamp had been effectively valued at $60 million. As a result of the deal, NXMH received an 80% share of the company and Kodrič kept a 10% interest in the enterprise.

It was also noted that apparently four other buyers had approached Bitstamp about acquiring it in the past. Although those offers were turned down, Bitstamp’s CEO said this one was accepted over those because NXMH said they would leave Bitstamp to operate just as it was already.