South Korea's largest exchange acquired by the Singapore BK consortium
According to South Korean media Money Today, Bithumb has been acquired by the Singapore-based BK Global Consortium. The BK consortium paid $353 million for the acquisition, and this bid is much lower than the valuation proposed by Bithumb in early February this year, which was about $880 million. BK has revalued Bithumb and the current valuation is more than $1.8 billion plus a management rights premium. This valuation is much higher than the value of the previously estimated existing market of approximately $1 billion.
Bithumb is one of the largest digital currency exchanges in Korea and one of the busiest exchanges in the world. According to the semi-annual report of BTC Korea Holdings, Bithumb's sales and operating profit reached 303 billion and 22 billion euros in the first quarter and second quarter of this year. BK Global, BK Medical Gourp, is a medical beauty agency that has successfully invested in BIT COMPUTER and HUGEL, which are listed companies in Korea.
BK Global will build a low-cost blockchain e-commerce payment system based on Bithumb and expand the functions of the exchange through stable currency. The consortium hopes that Bitmumb will play a central role in many businesses that link virtual currency to real life. A representative of the consortium believes that “e-commerce companies like Amazon and Alibaba are charging large commissions, which has become a problem for consumers. The blockchain payment system can reduce these commissions. If the company is owned by BK Consortium The alliance is established and the agency commission can be reduced to 0%. This will create a competitive advantage for existing e-commerce companies. In addition, BK Global will also launch stable currency to stabilize the payment system and plan to link stable currency to the US dollar.
According to reports, on October 11, BK Global Consortium decided to buy shares from 10 shareholders and finally decided to buy a 50% + 1 share contract from Bithumb's largest shareholder, BTC Korea Holdings. The deal will be reached with South Korean shareholders on December 12, and the former fifth largest shareholder, Kim Bing-gun, will become the largest shareholder in South Korea through the agreement. A representative of the consortium said that “Kim Bing-gun has demonstrated his multinational management capabilities in the medical, financial technology and blockchain areas of Singapore. He is the right person to pursue the systematization and globalization of virtual currency exchange.”
Kim Bing-gun has announced that he plans to open 'Bithumb Dex' through his Hong Kong subsidiary this month. This is a branch of the exchange. Hong Kong-based Dex will enable users around the world to send and receive cryptocurrency more smoothly. The Korean exchange has frequent incidents of money piracy. In June this year, Bithumb was hacked, and about 35 billion won of cryptocurrency was stolen. After the theft, the exchange issued a statement. The loss will be compensated by the company and the client's assets will be transferred to external storage devices that are not connected to the Internet. The BK consortium believes that Bitumum's Hong Kong exchange Dex will have a significant boost in securing crypto assets.
Executive editor： Ray