Bithumb’s $350 Million Acquisition is All Set to Be Canceled

Bithumb

Over the course of the past few years, the crypto ecosystem in South Korea has grown quite quickly and one of the better-known crypto exchanges to have emerged during that time is Bithumb. Last year in October, the Korean crypto exchange had reached an agreement on an acquisition deal, but that has fallen through due to apparent payment difficulties.

Due to the snafu, it has now emerged that some overseas investors are going to save the day and acquire the exchange. BK Consortium had agreed to acquire a 50% stake in addition to one solitary share in a deal worth $352 million.

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However, it has now emerged that BK Consortium is going to default on those payments and had previously found it difficult to make the $100 million down payment with regards to the deal. The whole thing has turned into a bit of a nightmare for Bithumb, with BK Consortium repeatedly failing to honor its commitments.

The deadline for the acquisition was actually April, but at the time BK Consortium could not make the payment and instead raised its stake in the exchange to 70%. In desperation, BK then tried to make a coin offering in order to raise cash. However, the downturn in the crypto market forced the company to scrap the plan.

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That being said, the South Korean exchange has managed to attract some overseas investors who are now expected to save the day. According to reports, investors from the United States and China are showing an interest in acquiring the exchange. If the overseas investors do get their hands on the company, then it is almost a certainty that a lawsuit will be brought in by BK Consortium with regards to the $100 million payment. It will be an important acquisition for whoever gets it, considering the fact that Bithumb is currently among the biggest crypto exchange in the world at the moment. It is ranked at 43rd in terms of daily volume.

Featured image: DepositPhotos © cupertino

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