Leon Li, the founder of crypto exchange Huobi Global, is reportedly looking to sell the majority of his stakes in the company in an acquisition deal that might be worth as much as $3 billion.
Huobi to Sell 60% Stake
According to a Thursday report, Leon Li is trying to sell off almost 60% of his stake in Huobi, an exchange that accounts for 5% of all crypto trading volume. The deal is valued at between $2 and $3 billion.
According to the report, Huobi’s existing investors, including ZhenFund and Sequoia China, were informed about Li’s decision during a shareholder meeting last month.
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Although the potential deal has been confirmed by a Huobi representative, they did not provide full details.
Bankman-Fried and Justin Sun in Talks
Reports suggest that Li envisions the new shareholders as “powerful and resourceful” people. In addition, the potential stakeholders should place a high value on the Huobi name and put more resources into driving its growth.
Insiders familiar with the deal have stated that FTX founder Sam Bankman-Fried and Tron founder Justin Sun have entered preliminary talks with Huobi on purchasing the stake.
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Since the crypto winter started, Bankman-Fried’s company has given crypto-lender Voyager Digital a $200 million loan and a $250 million revolving credit to BlockFi. He recently said that his company still has a “few billion” to shore up struggling firms.
On the Flipside
- Huobi, which was founded in China, has said that the government’s crackdown on the trade of digital assets caused it to lose roughly 30% of its revenue.
Why You Should Care
The possible $3 billion deal, which is said to be completed before the end of this month, could turn out to be one of the largest in the cryptocurrency market.
Get more info on FTX’s BlockFi loan on:
Crypto Lending Platform BlockFi Gets $250 Million Bailout Fund from FTX
Huobi’s struggle in Thailand is covered below:
Huobi Global to Close Exchange Operations in Thailand After License Revocation
