BK Global, a consortium based in Singapore, has reportedly acquired a majority position in Bithumb. The deal is said to be worth $354 million (400 billion won) and will see BK Global Consortium become the largest shareholder in the company.
A Bithumb spokesperson confirmed the sale on October 12. Speaking to Reuters, he said:
“Bk Global Consortium, led by Kim Byung-gun, a plastic surgeon and blockchain platform investor, signed a deal on Thursday to buy 50 percent plus one share in the exchange’s biggest stakeholder, BTC Holdings, for about 400 billion won ($354.09 million). The deal makes Bk Global Consortium the largest stakeholder of Bithumb.”
BTC Holdings Now Largest Stakeholder At Bithumb
The deal is set to be finalized in February 2019 according to Bloomberg. Data from an audit conducted in April shows that BTC Holdings has the most substantial stake on the platform with 75.99 percent. Vidente Co. Ltd is the second largest shareholder with a 10.55 percent stake, and Omnitel is third with 8.44 percent.
Bithumb is currently the leading crypto exchange in South Korea by trade volume. According to Bloomberg, the platform posted an operating profit of 218.6 billion won in the first half of the year.
Also, the platform recorded a net income of 39.3 billion won in the same period.
BTC Holdings semi-annual report shows that Bithumb managed to make sales worth 303 billion won in the first half of this year.
According to another report by News Asia, the amount BK Global has paid for Bithumb is lower than the $880 million figure established after appraisal in February. However, the news outlet adds that the consortium’s valuation of the exchange is even higher.
Now after purchasing the majority stake on the exchange, a BK Consortium Global official says that there are plans to launch a stable coin soon.
“We will also promote the introduction of a stable coin to stabilize the payment system. We will be in conjunction with the global exchange scheme to take advantage of the coin linked to the US dollar.”
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.
