Since the start of the week, news spreading across the crypto world suggests that Bithumb Exchange has eventually been sold to NEXON for $460M. The digital exchange platform has been on the lookout for potential buyers for a while after failing to possess the financial capacity needed to keep it running. Many media outlets said that NEXON had reached an agreement with the firm, and they are closed to taking over the affairs of the platform in exchange for $460M.
NEXON Denies Meeting With Bithumb Exchange for negotiations
The gaming conglomerate located in South Korea has publicly denied meeting with the crypto exchange firm for any form of negotiations. According to the company’s spokesperson, NEXON is not negotiating any deal with the crypto exchange firm.
He disclosed that NEXON is not interested in taking over the Bithumb crypto exchange platform. In his speech, all the reports suggesting their desire to buy the platform were mere speculations that shouldn’t be taken seriously because NEXON has zero desire to purchase the firm.
In the same vein, the gaming industry has sent a mail to all their customers via their email address, debunking the news spreading very fast in the crypto world. The company urged all users to ignore the news as there is no iota of truth in it. They also reaffirmed their commitment to serving their customers better than ever without acquiring the digital platform.
It should be recalled that the South Korean gaming conglomerate was too eager to purchase 65% of the crypto exchange platform’s stake a few years ago. After a series of productive negotiations between both parties in 2018, NEXON was largely tipped by experts to take over the company’s affairs.
NEXON’s initial bid to purchase the exchange platform was rejected
NEXON, which was reportedly close to sealing a $460 million trading transaction with Bithumb, surprisingly failed to wrap up the deal. NEXON’s decision to pull out of the deal remains undisclosed to the public, leaving Bithumb with no other option but to keep looking for a new buyer. Many suitors have shown their desire to purchase a stake in the world’s sixth-largest crypto exchange platform. In October 2018, another suitor, BK Consortium, picked up an interest in buying 50% plus one stake in the exchange platform.
Despite the initial agreement between both parties, the proposed $333 million take-over didn’t see a breakthrough. Bithumb wanted a one-time full payment, which appeared as a big demand to BK Consortium, who was only willing to pay in installment. This led to the end of discussions between the two firms in September 2020.
As it stands, local reports in China claim that Chinese exchange company Huobi might end up becoming the buyer of the South Korean exchange platform. The Chinese company believes capturing Bithumb will provide the best opportunity to become a mainstay in the country’s cryptocurrency market. However, the China-based company will have to consider some legal charges against Bithumb before reaching a final decision whether to buy or not.