Bitstamp acquired by Belgian investment firm NXMH
Bitstamp has been acquired by NXMH, a Belgian investment company which has previously shown interest in the cryptocurrency space.
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On Monday, Bitstamp CEO Nejc Kodrič said that the cryptocurrency exchange has been courting suitors for some time, but eventually selected NXMH due to "a combination of the quality of the buyer, the quality of the offer and the fact that the industry is at a point where consolidation makes sense."
Financial details were not disclosed, however, the rumored price is roughly $400 million and has reportedly been agreed as an all-cash deal.
The acquisition was agreed back in December but regulatory hurdles caused a delay of close to a year before the buyout could be finalized.
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Luxembourg-based Bitstamp is a cryptocurrency exchange which allows users to trade for virtual currency including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH), and XRP. Founded in 2012, Bitstamp is one of the longest-running online cryptocurrency exchanges in existence.
Kodrič is keen to emphasize that Bitstamp's "mission, leadership, and vision" will not change, and customers do not have to expect any major upheaval in relation to the firm's brand or purpose.
"It is business as usual here," the executive said. "We do anticipate that this acquisition will strengthen Bitstamp's positioning for growth, which will provide opportunities to better serve our customers. Customers should not have any concerns about their accounts or changes to the way we operate."
The buyer, NXMH, is a subsidiary of South Korea-based Nexon (NXC) and now owns 80 percent of Bitstamp. As part of the agreement, Kodrič retains 10 percent of the company and will continue to act as CEO.
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NXC previously acquired South Korean cryptocurrency exchange Korbit. The deal was agreed for roughly $80 million in return for a 65 percent share in the startup.
Kodrič told Fortune that a merger is not anticipated but the companies will likely share technology and resources.
"Bitstamp has come a long way since we started in a garage with two laptops and €1000 seven years ago," Kodrič said. "We believe this acquisition is the logical next step in Bitstamp's growth as a company and I look forward to the future with this team."
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Bitstamp has previously raised $12.5 million through three funding rounds. The firm's major investor is Pantera Capital.
Back in 2015, Bitstamp suffered a security breach which led to the theft of over $5 million in cryptocurrency. The exchange temporarily suspended services to revamp its security protocols.