FTX makes a play for Bithumb

South Korean cryptocurrency exchange Bithumb has announced it is considering selling a stake of the business to a global rival exchange FTX.

However, FTX looks to be moving to acquire the full company, which would secure it greater clout in the Asian and South Korean markets, which are opening to cryptocurrency rapidly.

FTX has been pushing forward with a strategy of mergers and acquisitions and reportedly offers to buy out several cryptocurrency lenders before they run into financial trouble.

FTX managed to sign a deal to acquire BlockFi for up to $240m, much lower than the $4.8bn valuation the firm is said to have.

FTX also entered an agreement to buy out Liquid, another cryptocurrency exchange operating out of Japan.

All of these moves enable the company to consolidate its presence in the region. Bithumb also processes around $500m worth of trades daily, according to CoinGecko information.

FTX has remained resilient in the face of the financial troubles that befell many other companies in the sector, including Three Arrows Capital and Voyager Digital.

Voyager accused FTX of “low-balling” the company, attempting to buy it for a much lower price than its valuation.

Most companies that have turned down FTX’s buyout moves have faced even graver consequences, squeezed by the current market crash and consumers’ undermined confidence.

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Updated: 07/27/2022 — 10:00