Is Huobi considering taking over Bitflyer, Japan, and Bithumb, Korea?
According to information from Chinese Crypto Reporter, Wu Blockchain, it appears that China’s Huobi exchange is trying to acquire the largest Japanese exchange – Bitflyer and the largest Korean exchange – Bithumb.
Exclusive: Wu learned that Huobi, China’s largest exchange, is trying to acquire Japan’s largest exchange, Bitflyer, and Korea’s largest exchange, Bithumb. Bitflyer’s price tag is $ 500 million. However, since Huobi is being assessed by the Chinese government, both will be suspended. pic.twitter.com/rORH7x1EMn
– Wu Blockchain （Chinese Crypto Reporter） (@WuBlockchain) 17th November 2020
Why did Huobi decide to buy Bitflyer and Bithumb?
Bitflyer is the largest cryptocurrency exchange in Japan with around 2.5 million users. Bithumb is now a household name in the Korean market. According to the information released, Bitflyer’s price tag is $ 500 million. However, since Huobi is under investigation by the Chinese government, this loss activity will be suspended.
Huobi’s globalization process has been relatively slow, most of which only thrive in China and the employees are Chinese too. In November 2019, Huobi announced its withdrawal from the US market. Japan and South Korea are the only remaining international markets.
Seems to recognize the risk of relying too much on the Chinese market so it is very urgent for Huobi to expand overseas at this point. However, it is unclear whether your decision is really the right one, as Japan and Korea are not good investment destinations anyway. Their users are very quiet and the government has super strict surveillance too.
Elsewhere, too, this decision shows that Huobi’s financial situation is very good. With the rapid expansion of derivatives and other businesses this year, Huobi has made a big profit and can reinvest in this acquisition. Bloomberg once announced that Huobi’s 2019 sales were around $ 680 million. Due to the sharp rise in currency prices this year, Huobi’s sales are expected to grow more than 50%.
At the moment, both acquisition talks are dragging on for some time, but due to the sudden investigations at the beginning of November, both acquisitions are pending the state investigation.
According to the AZCoin News