Crypto trade large Huobi’s founder and CEO Leon Li is in talks with buyers to sell his majority stake for $2 billion to $3 billion.
Li holds practically 60% of Huobi Global’s shares. If Li manages to sell them for $3 billion, it’ll mark the most important takeover in the market because the market cap fell beneath $1 trillion.
A spokesperson from Huobi confirmed Li’s resolution and mentioned:
“[Li] hopes that the new shareholders will be more powerful and resourceful, and that they will value the Huobi brand and invest more capital and energy to drive the growth of Huobi,”
So far, spokespeople from FTX declined to remark, and Sun mentioned he didn’t have any negotiations with Li relating to the sale.
Li launched Huobi international in 2013, and the corporate turned one of many largest crypto exchanges. However, it misplaced momentum when it shut down operations in China in November 2021. The resolution got here after the Chinese authorities deemed crypto transactions unlawful. The resolution hit Huobi tougher than some other trade, as China was Huobi’s major market.
The trade has expanded abroad to nations like Turkey and Brazil and is at the moment contemplating growth by acquiring a FinCen license. However, giants like Binance and FTX seem to be Huobi’s opponents in these areas.
Li’s resolution to sell his shares was leaked in July 2022 however wasn’t confirmed. At the time, Huobi was additionally anticipated to downsize and lay off round 30% of its workers — roughly 300 folks. The trade mentioned that the bearish market situations posed a monetary problem and that the corporate would minimize prices, together with layoffs.
Emergence of M&A
FTX has been bullish on Mergers & Acquisitions because the starting of the bear market. At the tip of May, FTX U.S. president Brett Harrison said that FTX was trying to unfold worldwide by buying corporations with the required regional licenses. He mentioned:
“We’re doing that globally, in places like in Japan, Australia, in Dubai, different places where we’ve been able to either partner with local companies or sometimes do acquisitions to be able to get licenses that we need,”
On the opposite hand, SBF was certain that many crypto exchanges and mining corporations would fail in the current winter market. SBF mentioned that he noticed this as a possibility to buy corporations that want a saving hand.