Leon Li, the founder of the Huobi exchange, will eventually sell his shares in the company to About Capital, a Hong Kong investment company. According to the press release, the ailing exchange should benefit from a substantial capital injection in order to continue its international expansion and return to the forefront.
Huobi changes majority shareholder
We reported in early August that Leon Li, the founder of the Huobi exchangewas in talks with various investors to sell his stake in the company, i.e. 60% of the total shares of the latter.
From then on, rumors from the hallway had begun to circulate, evoking a possible acquisition by Sam-Bankman-Fried, the CEO of FTXor by Justin Sun, the founder of Tron (TRX).
However, we learn via an official press release published on October 8 that it is finally About Capitala Swiss army knife company that operates in particular in mergers and acquisitions as well as in investment, which acquired the shares of Leon Li.
The press release specifies that this acquisition should not change anything in the commercial management of the exchange and that it will have no impact on the teams currently collaborating on the project. Nevertheless, About Capital should bring a new wind to Huobi :
” [Huobi] will adopt a series of new international branding and business expansion initiatives, including a global strategic advisory board led by leading industry figures, the injection of sufficient capital into the margin and the fund provisions, as well as measures to further strengthen competitiveness. »
The investment company ensures that once these solutions are in place, ” Huobi Global will be well positioned to provide top-notch trading and investment services to international investors “.
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Changes that are needed
Huobi, which nevertheless had a prominent place in the ecosystem of cryptocurrency exchange platforms, found itself faced with many difficulties, particularly legal ones. As such, already in 2019, its American subsidiary Huobi US had to end its activities for reasons of geographical regulation.
The company navigates in troubled waters and has been experiencing significant difficulties, particularly since its withdrawal from the Chinese market in 2021which had led to a substantial drop in its income, to the point of causing it to have to lay off some of its staff.
Since, the company has expanded internationally to capture more market share, notably in Dubai, New Zealand, Turkey and Brazil. According to Leon Li, the acquisition of About Capital should allow Huobi to fully develop in this perspective:
“Following Huobi’s exit from the Chinese mainland market in 2021, we have accelerated our globalization push in a challenging market environment, which adds momentum for Huobi to seek a new shareholding structure with a global view. and international resources. We believe that the successful acquisition by the About Capital vehicle will contribute to Huobi’s global expansion in both aspects. »
Huobi should therefore be in good hands, with About Capital being, according to the press release, one of the most successful investment companies in the Asian market.
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Source: Press release
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