Huobi Global, which has been China’s leading cryptocurrency exchange, has mentioned that its founder is now planning to sell his controlling stake to buyout firm About Capital Management (HK) Co.
Huobi has been reeling since its exit from the domestic market after Beijing banned crypto.
At the moment, the company is headed for a takeover by an investment firm, About Capital.
According to the statement, after the transaction is completed, About Capital’s buyout vehicle will control the majority stake of Houbi founder Leon Li.
The company announced today that the transaction has been completed and that the entire stake has been sold to About Capital.
About Capital is a Hong Kong-based fund that was started by Ted Chen. Ted Chen also founded Chinese hedge fund giant Greenwoods Asset Management.
According to reports, founder Leon Li was also looking to sell a majority stake of more than $1 billion, which was valued at $3 billion. The transaction is for an undisclosed amount. About Capital is now the controlling shareholder.
Huobi has mentioned that its core operation and business management teams will not have any impact due to this change.
What are the changes that are supposed to happen
After the deal is completed, About Capital will help Huobi promote itself and increase global exposure, as well as focus on other business expansion initiatives.
“Once the initiatives are successfully implemented, Huobi Global will be well positioned to provide first-class trading and investment services to international investors.”
About Capital is all set to build a global strategic advisory board that will be “led by industry leaders.”
Not only that, but About Capital has also joined other initiatives such as the establishment of a margin and risk provision fund and measures to improve the competitiveness of the stock market.
Huobi Global gained immense popularity, but soon after, Beijing declared all crypto transactions illegal in 2021.
The parent company, Huobi Group, currently operates an umbrella of crypto-related entities, which also includes the flagship exchange, Huobi Global.
It is a branch of venture capital called Huobi Ventures. The other crypto entity also includes a crypto cloud service.
Huobi crypto platform agreement with the city of Busan
Huobi Global was the third major cryptocurrency exchange to reach a blockchain ecosystem development agreement with the South Korean city of Busan.
Huobi has officially announced that its collaboration will help the company carry out extensive research and development, technology and financial support for the Busan digital currency exchange.
In addition, Huobi, the crypto platform, will also provide assistance in recruiting blockchain talent for the Busan local exchange.
Huobi Global, a cryptocurrency exchange, has been hit hard by the regulatory change because many of its users are still from China. Huobi has also laid off 30% of its workforce this year due to the loss of revenue from China.
