Business

Huobi Founder in Talks to Promote Majority Stake at $3B Valuation: Report

Key Takeaways

  • Huobi founder Leon Li is reportedly in talks with a number of traders, together with rival trade FTX and TRON founder Justin Solar, to promote 60% of the trade at a $3 billion valuation.
  • If finalized, the deal might be one of many largest within the crypto business, netting Li personally roughly $1 billion.
  • Opposite to the media stories, Justin Solar has denied ever participating with Li concerning the sale.

The deal might be one of many largest within the crypto business, netting Li over $1 billion at an fairness valuation of round $3 billion.

Huobi Founder Eyeing $1B Exit

Huobi founder Leon Li is reportedly in talks with traders to promote roughly 60% of the trade.

In response to a Friday Bloomberg report, the founding father of one of many world’s largest cryptocurrency exchanges, Huobi World, has held talks with a number of traders, together with rival crypto trade FTX and TRON founder Justin Solar, to promote a majority stake within the firm. Citing individuals conversant in the matter, Bloomberg mentioned that Li was looking for a valuation of round $2 billion to $3 billion, which means he may personally web round $1 billion from the sale. If concluded, the deal may mark one of many largest acquisitions within the crypto business.

The Seychelles-based Huobi was China’s largest cryptocurrency trade earlier than the nation banned cryptocurrencies  final yr. Regardless of struggling a big blow to its revenues following the ban, the trade has remained one of many largest within the business, recording a each day buying and selling quantity of round $1.1 billion. That’s about half the each day buying and selling quantity of U.S.-based Coinbase, which is presently valued at round $19 billion.

A Huobi spokesperson has reportedly confirmed to Bloomberg that Li had negotiated with a number of institutional traders concerning the sale. “He hopes that the brand new shareholders can be extra highly effective and resourceful and that they’ll worth the Huobi model and make investments extra capital and power to drive the expansion of Huobi,” they mentioned. Regardless of stories on the contrary, TRON founder Justin Solar has denied ever participating with Li in regards to the sale.

Huobi’s token HT surged about 25% from $4.48 to $5.46 on the information earlier than erasing a few of its positive aspects. In response to CoinGecko knowledge, HT is presently buying and selling at round $5.30, about 86.7% down from its all-time excessive value of $39.66 in Could 2021.

Disclosure: On the time of writing, the writer of this piece owned ETH and a number of other different cryptocurrencies.

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