Huobi Global, once China’s top crypto exchange, has been remodeling itself since it left its home market following Beijing’s crypto ban. Now the company is approaching a takeover by an investment company.
Huobi Worldwide announced today, its controlling shareholder completed the transaction to sell its entire stake to About Capital, a Hong Kong-based fund management firm founded by Ted Chen, who founded Chinese hedge fund giant Greenwoods Asset Management. This confirms an earlier message from Bloomberg He said founder Leon Li wanted to sell his majority stake for more than $1 billion, valuing the stock at $3 billion.
Founded in 2013, Huobi Global experienced the Chinese crypto boom before Beijing declared all crypto transactions illegal in 2021. Its parent company Huobi Group now operates an umbrella of crypto-related entities, including its flagship exchange Huobi Global, its venture capital arm Huobi Ventures, and a crypto cloud service.
Huobi Global and rival Binance said they have stopped serving China-based customers since the ban. While Binance started its global expansion well before the crackdown, Huobi Global seems to have been hit hard by the regulatory change as a large portion of its users were still in China. The trading platform was Reportedly To lay off 30% of its workforce this summer after the withdrawal from China dampened revenues.
About Capital’s buyout will not affect Huobi’s “core operations and business management teams,” the announcement said. The exact amount of the deal has not been disclosed, but it appears that the new parent company will provide much-needed capital to help the exchange get out of its financial troubles and go global in the midst of a crypto route.
According to About Capital, Huobi Global “will embrace a range of new international brand promotion and business expansion initiatives, including a global strategic advisory board led by industry leaders, the injection of sufficient capital into the margin and risk provisioning fund, as well as measures to further enhance competitiveness.” increase.”
“Following Huobi’s exit from the mainland China market in 2021, we accelerated our globalization drive amid a challenging market environment, reinforcing the impetus for Huobi to seek a new shareholder structure with global vision and international resources,” said Huobi. Li in a statement. “We believe the successful acquisition by About Capital Vehicle will contribute to Huobi’s global expansion in both respects.”