Huobi Global, which has been China’s top crypto exchange, has mentioned that its founder is now planning to sell his controlling stake to buyout firm About Capital Management (HK) Co.
Huobi has been altering itself ever since its exit from the home market after Beijing banned crypto.
At the current moment, the company is headed towards a takeover by an investment firm, About Capital.
According to the statement, after the completion of the transaction, the buyout vehicle of About Capital will control the majority stake of Houbi founder Leon Li.
The company announced today that the transaction has been completed and that the entire stake has been sold to About Capital.
About Capital is a Hong Kong-based fund which was started by Ted Chen. Ted Chen also founded China’s hedge fund giant Greenwoods Asset Management.
According to reports, the founder, Leon Li, was also looking to sell a majority stake of over $1 billion, which was valued at $3 billion. The transaction is for an undisclosed amount. About Capital is now the controlling shareholder.
Huobi has mentioned that its core operation and business management teams will have no impact because of this change.
What Are The Changes That Are Supposed To Ensue
After the completion of the deal, About Capital will help Huobi with further promotion and increase global exposure, along with focusing on other business expansion initiatives.
“Upon successful implementation of the initiatives, Huobi Global will be well positioned to provide first-class trading and investment services to international investors.”
About Capital is all set to build a global strategic advisory board that shall be “led by leading industry figures.”
Not only that but About Capital has also signed up for other initiatives such as setting up a margin and risk provision fund along with measures that enhance the exchange’s competitiveness.
Huobi Global gained immense popularity, but soon after that, Beijing declared all crypto transactions illegal in 2021.
The parent firm, Huobi Group, currently operates an umbrella of crypto-related entities, which also includes the flagship exchange, Huobi Global.
It is a venture capital arm called Huobi Ventures. The other crypto entity also includes a crypto cloud service.
Crypto Platform Huobi’s Agreement With The City Of Busan
Huobi Global was the third major cryptocurrency exchange that struck a blockchain ecosystem development agreement with the South Korean city of Busan.
Huobi has officially announced that their collaboration will assist the company in conducting extensive research and development, technology, and financial support for the Busan Digital Currency Exchange.
Additionally, Huobi, the crypto platform, is also going to provide assistance in hiring blockchain talent for Busan’s local exchange.
Huobi Global, a cryptocurrency exchange, has been hard hit by the regulatory change because many of its users are still from China. Huobi has also laid off 30% of its workforce this year owing to loss of revenue from China.
Featured image from World Business Outlook, chart from TradingView.com