Bitstamp, as we know it so far, is the largest Cryptocurrency exchange system in the European Union. Of course, it is a trusted platform with hundreds of thousands of investors. Today, the platform was bought by a South Korea Holding company in what Financial Times call a consolidation among some in the digital currency market.

According to a report published by Gertrude Chavez-Dreyfuss on Reuters, the acquisition was based on 100% cash deal.

European investment firm buys digital exchange Bitstamp in all cash deal

Kodrič declined to disclose terms of the deal, which was signed on Oct. 25. In 2016, Bitstamp was valued at $60 million, up from a 2014 valuation of $39 million, according to Kodrič. Bitstamp is the largest digital currency exchange in the European Union by volume, with turnover of $100 million per day.

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The deal was signed on October 25, 2018. But the CEO of the platform did not reveal the terms of the deal to the media.

According to FT, Bitstamp is the largest Cryptocurrency trading platform by volume in the European Union.

South Korean group buys cryptocurrency exchange Bitstamp

The firm said that while it will operate independently of Korbit, the tie-up would allow the two firms to “generate synergies in a number of areas, including technology, research and development”.

Largely unprepared crypto exchanges grappled with soaring demand at the end of last year as speculators rushed to trade volatile virtual currencies. Some estimates put the fees generated by some of the largest players at millions of dollars a day.

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Based on the report shared by the Financial Time, the system currently has more than one million active users.

Joe Curtis, an author at CITYAM says that the acquisition will lead to an expansion of the digital currency.

Cryptocurrency exchange Bitstamp bought by South Korean-backed fund

Cryptocurrency exchange Bitstamp has been acquired in an all-cash deal by South Korean investors as its boss claims the technology is entering the mainstream. Chief executive Nejc Kodric didn’t disclose the value of the sale but said the acquisition by Belgium-based NXMH will allow the digital currency exchange to expand.

“We do anticipate that this acquisition will strengthen Bitstamp’s positioning for growth, which will provide opportunities to better serve our customers,” he said.

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The report also reveals that while the company has been acquired, it will continue to operate independently as usual.

Conclusion

Bitstamp is already a big platform. So, we can expect the platform to continue to grow even bigger in the future than it is currently.