FTX Exchange CEO Denies Rumors of Acquiring Huobi Global

• On August 12, speculation about a prospective takeover first surfaced.
• BlockFi received a credit line from FTX in the month of July.

According to FTX, there are no plans to buy Huobi. CEO of FTX Sam Bankman-Fried shot off the reports on August 29 through a tweet. Bankman-Fried was vague about whether or not his organization has intentions to invest in Huobi via buying shares.

Debunked as a merger, the transaction would have united two of the largest crypto trading platforms. Over the last 24 hours, FTX processed $1.8 billion in volume, whereas Huobi processed $640 million.

On August 12, speculation about a prospective takeover first surfaced. Bloomberg reported at the time that Huobi’s founder Leon Li was considering selling his shares. Li has a 60 percent stake in Huobi, which is now valued between $2 billion to $3 billion. According to that report, a number of investors, including FTX and Justin Sun, were considering making a bid for a controlling stake in Huobi.

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Even though FTX has no plans to acquire Huobi, the company has looked at other acquisition opportunities so far in 2022. Due to Celsius’s financial constraints, it opted against purchasing the crypto lending business in June.

BlockFi received a credit line from FTX in the month of July. That offer includes a buyout provision for BlockFi at a price range of between $0 and $240 million. In July, FTX also made an offer to buy Voyager Digital’s assets without acquiring the company. Though Voyager Digital had previously accepted a loan from FTX, the company vehemently refused this offer.

During the same month, Bloomberg reported that the business was looking at buying the Bithumb exchange in South Korea. Those rumored acquisition strategies have not resulted in any actual purchases. However, FTX’s significant revenue and status suggest that the company is considering sizable transactions in the market.

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