Gaming Giant Nexon Reportedly Considers Acquiring Cryptocurrency Exchange Bithumb

A recent report fueled the rumors that the South Korean digital asset exchange Bithumb is indeed for sale by naming a potential buyer. It indicated that the Tokyo, Japan-headquartered gaming conglomerate Nexon is preparing to purchase a controlling stake in the trading platform. 

• Numerous reports from the past several months suggested that the Asian exchange is in trouble as authorities had raided the company’s offices on several occasions.
• The situation worsened as the exchange closed some offices following rising COVID-19 threats and summoned the company’s chairman over alleged fraud. Shortly after, local news outlets said that the platform is for sale, and the price could range between $430 and $600 million.
• Coverage from today named a potential buyer – the gaming giant Nexon, led by CEO Kim Seoung-Ju. The company will reportedly work with one of the largest shareholders in the exchange, Vidente, to take a 65% stake in Bithumb. 
• The report evaluated Bithumb’s shares to be worth about 1 trillion KRW ($914 million). It’s worth noting, though, that the local reports outlined different purchasing prices. 
• The first one said that Nexon would pay 500 billion won ($460 million), while the other noted the price would be 650 billion won ($600 million). Nevertheless, both agreed that the gaming giant would take advantage of a substantial discount. 
• Cryptocurrency analyst and commentator Joseph Young described the potential deal as “absolutely massive.” He believes that if successful, the acquisition would “improve the image around the most dominant crypto trading platform in the local market.”