FTX Denies Any Plans to Purchase Huobi

Key Takeaways

• FTX CEO Sam Bankman-Fried mentioned right this moment that his agency has no plans to accumulate the crypto change Huobi.
• That risk was raised on Aug. 12 when Bloomberg urged Huobi’s founder was promoting his stake.
• Rumors of different FTX acquisitions are circulating elsewhere, although not all of these rumors have substance.

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Main crypto change FTX will not be planning to accumulate Huobi, based on a latest assertion from the corporate’s CEO.

FTX Says It Gained’t Purchase Huobi

FTX says that it doesn’t intend to accumulate Huobi.

FTX CEO Sam Bankman-Fried denied the rumors on August 29. He tweeted: “Simply to be specific as a result of apparently lots of people are saying this…no, we aren’t planning to accumulate Huobi.”

Bankman-Fried didn’t make clear whether or not his agency plans to buy shares in Huobi or in any other case put money into the corporate.

The now-debunked acquisition would have represented a deal between two main cryptocurrency exchanges. FTX dealt with $1.8 billion in quantity during the last 24 hours, whereas Huobi dealt with $640 million in quantity over the identical interval.

Rumors of the potential buyout started to flow into on August 12. At the moment, Bloomberg urged that Huobi founder Leon Li had begun to contemplate promoting his stake within the firm. Li holds 60% stake in Huobi, valued between $2 billion and $3 billion.

That report urged that numerous buyers together with FTX and Justin Solar may purchase majority stake in Huobi.

Although FTX has no intention of buying Huobi, the agency has explored different acquisitions this yr. In June, it thought of buying the crypto lending service Celsius, however determined in opposition to that plan on account of Celsius’s poor funds.

In July, FTX prolonged a line of credit score to a different lender, BlockFi. The phrases of that supply give it the choice to accumulate BlockFi at a variable worth of as much as $240 million. More moderen reviews recommend that such a deal may quantity to only $15 million.

Additionally in July, FTX supplied to accumulate Voyager Digital’s belongings with out buying the corporate itself. Voyager Digital strongly rejected that supply regardless of accepting an earlier mortgage from FTX.

That very same month, Bloomberg urged that the corporate was exploring an acquisition of the South Korean change Bithumb.

None of these supposed acquisition plans have come to fruition. Nonetheless, FTX’s excessive income and standing imply that it’s seemingly exploring giant offers within the trade.

Disclosure: On the time of writing, the writer of this piece owned BTC, ETH, and different cryptocurrencies.

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