China’s largest exchange Huobi is trying to acquire Bitflyer and Korea’s largest exchange Bithumb
According to information from Chinese Crypto Reporter, Wu Blockchain, it appears that the Chinese exchange Huobi is trying to buy back Japan’s largest exchange – Bitflyer and South Korea’s largest exchange – Bithumb.
Exclusive: Wu learned that Huobi, China’s largest exchange, is trying to acquire Japan’s largest exchange Bitflyer and Korea’s largest exchange Bithumb. The price of Bitflyer is US$500 million. However, as Huobi is investigated by the Chinese government, both will be suspended. pic.twitter.com/rORH7x1EMn
— Wu Blockchain（Chinese Crypto Reporter） (@WuBlockchain) November 17, 2020
Why did Huobi decide to buy Bitflyer and Bithumb?
Bitflyer is Japan’s largest cryptocurrency exchange, with around 2.5 million users. Meanwhile, Bithumb is a fairly famous name in the Korean market. According to the information disclosed, the price of Bitflyer is hanging at $ 500 million. However, due to Huobi being investigated by the Chinese government, this loss-buying activity is being suspended.
Huobi’s globalization process is relatively slow, mostly only thriving in China, and its employees are also Chinese. In November 2019, Huobi announced its withdrawal from the US market. Japan and South Korea are the only international markets left.
It seems that there is a risk of too much dependence on the Chinese market, so overseas expansion is very urgent for Huobi right now. However, it is not clear whether this decision is really correct or not because Japan and Korea are not good investment targets anyway. Their users are reticent, and the government also has super strict scrutiny.
Elsewhere, this decision also shows that Huobi’s financial situation is very good. With the rapid proliferation of derivatives and other businesses this year, Huobi has reaped huge profits and can reinvest in the acquisition. Bloomberg previously revealed that Huobi’s revenue in 2019 is around $ 680 million. Due to the sharp increase in currency prices this year, Huobi’s revenue is expected to grow by more than 50%.
For the time being, both acquisitions negotiations take some time, but due to the abrupt investigation in early November, both acquisitions will be suspended until the Chinese government’s investigation ends.
- BitcoinSV Backed ShowPay Raises $1.5 Million To Build A Global ID Based On Blockchain
- The Expectation Ethereum Price Will Increase Thanks To ETH 2.0 Strongly Is Probably Not As Strong As We Think