Huobi Global was undergoing restructuring in the course of the last several months after leaving the market because of the Chinese government’s ban on using cryptocurrencies. Now the company is going through the process of being acquired by an investment corporation.
According to the latest Huobi report, its controlling shareholder has sold all his assets to About Capital, a gigantic Hong-Kong fund management company, created by Chen Tide (who is also known as the creator of Chinese giant Greenwood Asset Management). Another founder, Li An is said to have sold his share for 3 billion dollars.
Huobi Global history
Founded in 2013, Huobi Global was banned by Beijing government because of the cryptocurrency trading restrictions in 2021. Its launch took place before Beijing created such measures.
Still, no matter the law, it is in control of several cryptocurrency-related organizations, including the main exchange Huobi Global, a venture capital organization Huobi Ventures, and cloud services to operate cryptocurrency Huobi Global.
Chinese market
Both Huobi and its competitor Binance have stopped their work on the Chinese market since 2021. Binance began its global expansion well before the launch of Huobi Global, but still most Chinese people preferred the latter service. And they are mostly affected by the governmental law. The exchange company reportedly cut its headcount by 30 percent after leaving the Chinese market.
Deal details
Huobi’s higher-ups will not be affected by the acquisition of the company by About Capital. The numbers behind the deal have not been declared to the public, but it appears that the new parent company will provide much-needed funding to help the exchange recover from its financial troubles and enter the global market.
The future of Huobi
According to the About Capital announcement, Huobi Global will take on a number of new international branding and business development initiatives, including an international advisory strategies service created by the leaders of the industry, creation of impressive margin and risk reserves, and other ways to strengthen their position on the market.
Mr. Li stated that Huobi has been operating in the market since 2011 and the development of the company will go on and accelerate in the future, including global expansion and operating in other countries crypto-markets.
The acquisition of the main shares of the corporation by the About Capital will help it grow faster and expand on international markets, thus becoming even more strong and profitable than it used to be.