According to Bloomberg on Friday, Leon Li, the creator of cryptocurrency exchange Huobi Global, is negotiating to sell majority ownership in the business, putting its value at $3 billion or more.
According to the report, which cited people with knowledge of the situation, Li is seeking to sell nearly 60% of the company and has had preliminary discussions with Justin Sun, Tron blockchain network founder, and FTX, the cryptocurrency exchange established by billionaire Sam Bankman-Fried.
Earlier today, Sun denied being involved in a tweet. He stated that he has not engaged with matters associated with the Bloomberg story.
Seychelles-based Huobi is one of the biggest cryptocurrency exchanges globally, according to CoinGecko, with a daily trading volume of over $1 billion.
The transaction would rank among the largest ever in the cryptocurrency sector. Most of the top companies in the industry have had to cut expenditures and staff due to the slump in the cryptocurrency market, but this may be the first time one of those companies has sold a controlling interest.
The report further disclosed that during a shareholder meeting last month, Li's agreement was announced to Huobi's current investors, including ZhenFund and Sequoia China.
The report also stated that a deal might be finalized by this month's end. According to the source, Li is aiming for an overall valuation of $2 billion to $3 billion, which suggests that the share sale might bring in more than $1 billion.
FTX has made several offers to acquire crypto companies during the recent market downturn, snapping up Japanese exchange Liquid in April before agreeing to acquire Canadian trading platform Bitvo two months later. It also has a deal in place to purchase lending platform BlockFi for up to $240 million.
The recent market plunge has seen FTX make several acquisition offers for cryptocurrency businesses. In April, it purchased the Japanese exchange Liquid and two months later reached an agreement to purchase the Canadian trading platform Bitvo. Additionally, it has an agreement to buy financing platform BlockFi for as much as $240 million.
Additionally, FTX has been considering buying Celsius Network and Voyager Digital, which both declared bankruptcy in July.
Huobi's primary cryptocurrency, HT increased by about 25% to $5.43 after the Bloomberg news was released, reaching a peak of $5.80.
If this reality falls through, this development could come with quite an impact on the crypto world. Can you predict some of these changes? Please share them with us in the comment section.
