Huobi has declared in one of its blog posts that the company will sell its majority stake to About Capital Management (a platform based in Hong Kong). With the occurrence of an alteration in the ownership, no effect will be made on the essential activities of the exchange. As expressed by Huobi, the focus thereof will be on the enlargement of its business across the international sphere. This plan takes into account the development of a systematic advisory board that will operate across the globe and its leaders will be prominent figures within the industry.
Huobi to Provide the Majority Stake to About Capital Management
The strategy of the exchange additionally takes into account the creation of a fund specified for the risk provision along with its capital infusion, as mentioned by the exchange that is based in Asia. The respective contract’s financial terms were not revealed. In August this year, some rumours surfaced regarding the plans of Sam Bankman-Fried (the CEO of the crypto exchange FTX) to buy the respective exchange however he denied any such strategy on being asked about it.
Leon Li Lin, the controlling shareholder – and founder of Huobi – has assured to pass on the ownership thereof to About Capital Management. This move is being taken at a point in which the crypto world is facing great trouble during the meltdown of the industry. On Saturday, the declaration of this decision took place in Huobi exchange’s statement on its official website nonetheless the name of the seller was disclosed there.
After that, the Huobi founder clarified that About Capital Management was the name of the entity to receive the ownership of the stake under Li. In his words, he does not have the status of Huobi Global’s shareholder anymore and thus cannot exercise any authority over the company whether straight or indirectly. In his post, he added his conception that a unique momentum will be provided by the next controlling shareholder in the future in terms of the firm’s globalization.
Crypto Exchange Eyes Embracing Several Additional Moves for Business Expansion
Following the transfer, the strategy of Huobi is to adopt a list of unique initiatives dealing with the business expansion and the brand promotion of the platform. Such endeavors take into account the inclusion of more capital, as per the statement made by the firm. No influence will be made by the contract on the intrinsic operations as well as the business management groups of Houbi, according to its announcement.
After being established in Beijing in 2013 by Li, the company did a lot of efforts to acquire a prestigious place and it remained effective in doing that to a great extent after becoming a worldwide cryptocurrency exchange. Nonetheless, it has been struggling with the crackdowns conducted on the behalf of the authorities in China. As a result, in 2017, the Bitcoin exchanges were prohibited to operate within the country’s jurisdiction, even though a few people in China were capable of circumventing the respective restrictions to access the services of Huobi.