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On Monday October 29 it was announced that a Belgium-based investment company has bought Bitstamp, the digital currency exchange, in a cash deal. The deal was announced by Bitstamp’s CEO Nejec Kodrič.
Bitstamp is currently one of the world’s largest cryptocurrency exchanges, however, it came from small beginnings when Kodrič started the company in 2011 with just 1,00 euros.
This isn’t’ the first time Bitstamp has attracted investors; in April 2018 it was rumored that the Korean-Japanese game company Nexon was in purchasing talks with Bitstamp. Before this, the company also managed to raise a total of around $14 million from multiple investors, including major San Francisco based blockchain investors Pantera Captial. Bitstamp was also the first exchange offer a “multisig online Bitcoin wallet “ (requiring two of three signatures to authorize transactions), showcasing their enthusiasm for security in the industry.
The Belgium-based investment company in question is NXMH, a private equity and investment company that is also well known for owning South Korean cryptocurrency exchange Korbit. Kodrič has declined to disclose the terms of the deal however he did give some hints, telling reporters that in 2016 the digital exchange was worth $60 million, up $21 million from its 2014 valuation. Rumors put the price at around $400 million.
Kodrič will remain the CEO of Bitstamp, continuing to progress the company and doesn’t expect anything to significantly change for the company’s customers or it’s 180 people employee base.
In an interview on the topic, Kodrič said “We have kind of the same opinion as NXMH—why change something if it works perfectly well?…[Bitstamp] has been profitable from almost day one.”
There is speculation that NXMH may look to merge Korbit and Bitstamp now it has both of the crytocurrency exchanges under its control; however, Kodrič doesn’t believe this will happen. He does say though that the companies to plan to collaborate and share research and technology.
Kodrič stresses that Bitstamp accepted this deal because he believed NXMH had the ability to take Bitstamp to a higher level if they worked together, so this was a deal to improve the future standing of the company, rather than a way to raise capital. He added, “we were not looking to sell”.
This deal with NXMH is sure to put Bitstamp further on track with their goals of global expansion.