FTX Close to Acquiring Bithumb After Talks with Stakeholder

There might be some truth to the story of FTX closing in on a Bithumb acquisition, as a major stakeholder confirms talks are underway with the company over the sale of its holdings.

Vidente, a firm with a large stake in Bithumb, has revealed in a regulatory filing that it has entered into talks with FTX to sell its stake. The filing disclosed that it is mulling over the options of co-management or an outright sale via the right of priority purchase.

It was stated that Vidente holds a substantial stake in the South Korean exchange, with the latest disclosure revealing 34.2% and 10.22% in Bithumb Holdings and Bithumb Korea respectively. 

However, no decisions have been reached by both negotiating parties, with intense horse-trading expected to take place over the coming days. Since the news broke of FTX’s intention to buy its stake, Vidente’s stock price rallied by 29.77% over 24 hours.

FTX eyes struggling Bithumb 

FTX set its sights on Bithumb, a South Korean exchange, with Bloomberg reporting that Sam Bankman-Fried’s firm was closing in on a massive buyout. The report noted that talks have reached an advanced stage and the deal could be closed in weeks.

Although Bithumb did not join the gamut of cryptocurrency exchanges that paused withdrawals, it appears that the exchange’s financials may be tearing at the seams. Bithumb has had to endure a barrage of lawsuits from regulators that may have contributed to the firm’s struggles despite recording healthy trading volumes.

Huobi had previously thrown its hat in the ring to buy Bithumb, but the deal did not come to fruition.

Bithumb is one of the big four exchanges in South Korea, along with Coinone, Korbit, and Upbit.

Bankman-Fried’s quest to save the cryptoverse

Bankman-Fried has assumed the role of crypto’s white knight in shining armor with the mission of saving struggling firms in the industry. Through his companies FTX and Alameda Research, BlockFi and other firms have been offered lines of credit to assist during the industry-wide liquidity crunch.

Last month, FTX announced that it had purchased Bitvo, a Canadian crypto exchange, while Bankman-Fried claimed in a separate interview that his firm still has a “few billion” to rescue struggling companies in the industry.

“I do feel like we have a responsibility to seriously consider stepping in, even if it is at a loss to ourselves, to stem contagion,” the CEO said.