After deciding to stand down as CEO of Huobi Global, a cryptocurrency exchange platform in Hong Kong ranked top 10 in the world by trading volume. The investment firm About Capital is buying it.
Huobi Global Founder Resigns
The company’s founder and the chief executive officer said on social media that he resigned. He would no longer have any input on any element of the company’s operations.
Sources claim Leon’s unwillingness to leave China. They are coupled with police investigations in 2020. These are the primary motivating factors for his decision to depart the firm.
In a recent blog post, Huobi Global mentioned that once the transaction is finalized. About will “acquire the majority interest” of Huobi.
There would be no disruption to business operations. The firm said, reassuring investors.
Following months of conjecture, Huobi’s owner, Leon Li, has confirmed that he sells over 60% of the business. He desired a minimum of $1 billion to sell the company.
The stories and rumors have led up to the announcement. The agreement’s specifics with About Capital were kept confidential throughout the process.
The blog entry claims that “sufficient money in margins and hazard support fund” would be provided to the exchange. It has changed hands and is preparing to broaden its international reach under its new management.
In 2013, Li founded the company in China. He said the exchange would leave China by 2021. It was the first step to becoming a global initiative spearheaded by About Capital.
Value Of Huobi’s Stocks Soar
As a result of the announcement, the value of Huobi’s native token, HT, increased significantly. It has been speculated and rumored for some time that Li has been actively seeking a buyer for Huobi.
Huobi Global revealed that About Capital Management’s M&A Fund would acquire the cryptocurrency exchange. According to the article, About will “hold the majority interest once the transaction is finalized.”
Despite this, trading activities will not be impacted by the change in ownership. Huobi and About have not yet disclosed the specifics of their business partnership to the general public.
In addition, the announcement article on Huobi’s blog said that due to this change in ownership. The company intends to extend its operations to other countries and would get an “injection of appropriate money in margin and risk provision fund.”
Leon made the following statement in response to the acquisition: “Following Huobi’s departure from the Chinese mainland market in 2021.
We have increased our drive for globalization in a challenging market climate.” We are sure that the successful purchase of Huobi by About Capital vehicle will support the company’s growth on a worldwide scale.