Sam Bankman-Fried, the founder and CEO of FTX has denied rumors making rounds that his cryptocurrency exchange is engaging in talks to acquire Huobi Global.
FTX Will Not Buy Huobi Global
Two weeks ago, we reported that Leon Li, the founder of Huobi Global was seeking to sell a 60% stake in the company due to growing financial difficulties. The deal would value the company at $3 billion.
Early speculations linked Bankman-Fried’s FTX, which has already extended financial lifelines to several troubled crypto companies in the past few months including exchange BlockFi and lender Voyager Digital.
However, the crypto billionaire has announced via Twitter (NYSE:TWTR) that his company wasn’t planning to buy the exchange. Bankman-Fried wrote on Twitter:
Just to be explicit because apparently a lot of people are saying this:No, we are not planning to acquire Huobi.— SBF (@SBF_FTX) August 29, 2022
Sun Not Also Denies Interest
Justin Sun, founder of the Tron blockchain network, the other party earlier reported to be interested in bidding on the Huobi stake denied any interest in a tweet.
We have not engaged any matters related to the Bloomberg story at this moment.— H.E. Justin Sun (@justinsuntron) August 12, 2022
However, Huobi Global, one of the world’s largest crypto exchanges, with a daily trading volume of over $1 billion, is looking to close the deal as early as the end of August. If a buyer was found at its purported valuation, it would be one of the largest crypto deals of the year.
On the Flipside
- In July, FTX offered to buy the now bankrupt lender Voyager Digital, but was rejected for being a “low ball bid.”
Why You Should Care
Despite recording one of the biggest revenues in the first half of the year, the prolonged market downturn is predicted to affect the third quarter earnings of FTX.
Read about the Huobi deal in:
Huobi Founder to Sell His Stake at $3 Billion, Bankman-Fried and Justin Sun in Talks on Purchasing
Get more info on Huobi’s earnings below:
Sam Bankman-Fried’s FTX Revenue Surges Over $1 Billion on 1000% Growth