Bitstamp, a cryptocurrency exchange, has been acquired by South Korean investors in an all-cash deal. It comes as its boss claims that the technology is entering the mainstream.
Nejc Kodric, the chief executive of the company, did not reveal the value of the sale. However, he said that the acquisition by Belgium-based NXMH will enable the digital currency exchange to expand.
He stated: “We do anticipate that this acquisition will strengthen Bitstamp’s positioning for growth, which will provide opportunities to better serve our customers.”
The company said that the customers of Bitstamp will be getting better customer service, trading functions, and user experience as a result of the said acquisition.
NXMH, its new owner, is owned by NXC, a company that is headquartered in South Korea. It also owns Korbit, a South Korean crypto exchange.
NXMH emphasised that both Bitstamp and Korbit will continue to operate independently. However, it said that it expects synergies in technology and research and development.
An investment manager at NXMH stated: “Bitstamp is one of the oldest and most-respected cryptocurrency exchanges and we see positive growth potential as the industry continues to evolve.”
He added: “We acquired Bitstamp because we see it as a strategic, long-term investment.”
He continued: “NXMH shares our vision for the future of digital currencies,” added Kodric. “We see cryptocurrency continuing to become more mainstream and a part of people’s everyday lives, as well as growing at the institutional level as the gap between the digital and traditional financial worlds keeps shrinking.”
Kodric will still continue to serve as the chief executive of the company after establishing Bitstamp together with Damian Merlak in 2011. Since then, it has developed to count more than 3 million customers.
Kodric will maintain a minority ownership stake in Bitstamp, while Pantera Capital Management, which invested $10m (£7.8m) in the company in 2014, will be maintaining a six percent stake.