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Morgan Stanley is Reportedly Bidding for Bithumb for $2 Billion Valuation

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The investment banking giant, Morgan Stanley is planning to acquire a stake in one of South Korea’s largest cryptocurrency exchanges, Bithumb, according to the local media outlet. Reportedly the American bank has approached Bident, which owns around a 10% stake in Bithumb Korea and is considering an investment between 300 billion (USD 254 million) and 500 billion (USD 441 million) Korean won.

Morgan Stanley Negotiating with Shareholder Bident

Morgan Stanley which recently allowed accredited investors to access Bitcoin funds is considering investing up to $50 billion won (USD 44.1 million) into Bithumb.

The report cited an anonymous senior official from Bithumb saying, “Morgan Stanley participated in the acquisition of Bithumb.”

Should the deal go through, Bithumb valuation is expected to reach $2 billion.

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Just last year, the South Korean cryptocurrency exchange generated 20 billion won (USD17.7 million) worth of operating profit.  The exchange’s market value is estimated to reach two trillion Korean won (USD1.7 billion).

A second anonymous source remarked on Morgan Stanley approaching Bithumb:

“The reason Morgan Stanley used Bident because it is understood that Bident has the right to negotiate a preferred sale to acquire Bithumb Holdings.”

Rumors of the banking giant, approaching Bident resulted in the shares of the video equipment maker company skyrocketing up to a 52-week high on the KOSPI index.

As of 9:20 am on 19 March, Bident traded at 15,300 won on the KOSDAQ market, up 16.41% (2,200 won) from the previous trading day.

Bithumb’s Uncertain Deals

Despite the rumors, Morgan Stanely has not confirmed or denied the negotiations.

READ  DAIM Blames Wall Street Firm For Advising Against Crypto

This is not the first time, a major U.S bank is eyeing to acquire Bithumb. JPMorgan Chase and derivatives exchange CME Group are also reportedly considering negotiations.

Meanwhile, in January 2021, news surfaced that local gaming company Nexon reportedly signed a memorandum of understanding with the exchange to acquire a 65% stake. In the same month, the South Korean gaming giant denied those reports.

#Bident #Bithumb #Morgan Stanley

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Source: https://www.cryptoknowmics.com/news/morgan-stanley-is-reportedly-bidding-for-bithumb-for-2-billion-valuation

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