October 29, 2018 11:54 PM
Bitstamp’s CEO says the buyout won’t affect customer accounts.
Belgium-based investment company NXMH has acquired a majority stake in cryptocurrency exchange Bitstamp, according to an October 29 letter written to Bitstamp customers by CEO Nejc Kodrič. NXMH is in turn owned by Korea-based Nexon Holding (NXC).
According to Kodrič, the exchange has been courted by various suitors for quite some time, but the decision to sell was made based on the “quality of the buyer, the quality of the offer and the fact that the industry is at a point where consolidation makes sense.” Despite the acquisition, says Kodrič, “The mission, leadership, and vision of the company remains the same.”
This is echoed by an October 29 report from Reuters, in which the CEO asserts that the main reason Bitstamp’s he decided to sell to NXMH was that the investment company will allow the exchange to operate independently.
Bitstamp’s trading volume has steadily declined over the past year, as have the volumes of other exchanges.
According to its LinkedIn page, NXMH is a family-owned investment company that holds over €2 billion in assets and focuses on majority and minority buyouts.
In this majority buyout, NXMH will retain an 80 percent stake in Bitstamp, while Kodrič will keep his position as CEO and a 10 percent stake in the company. Reuters reports that NXMH has also acquired part of Pantera Capital Management LP’s $10 million stake in Bitstamp.
Kodrič wants to put Bitstamp’s customer’s minds at ease over concerns of changes coming to the exchange because of the buyout. In his letter, he explains:
“It is business as usual here. 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.”
Nathan Graham is a full-time staff writer for ETHNews. He lives in Sparks, Nevada, with his wife, Beth, and dog, Kyia. Nathan has a passion for new technology, grant writing, and short stories. He spends his time rafting the American River, playing video games, and writing.
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