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A few days after reports broke out claiming that Morgan Stanley is in talks to invest in or buy a controlling stake in South Korea’s Bithumb, the popular investment bank is out with its response. According to the same, there is no truth to such reports, with a representative of the bank claiming that such reports are completely “unfounded.”
However, it is worth noting that the above sources quoted a “senior Bithumb Holdings official” for the same. They asserted,
“Morgan Stanley was in advance talks in investing for a majority stake at the trading platform that was valued around USD 266- 443 million in Bithumb.”
Furthermore, the rumours about a possible acquisition fueled a rise in the valuation of Bident’s stake, which is Bithumb’s largest shareholder.
The current stories follow earlier this year’s speculation that Nexon, the corporation behind Bitstamp, had tabled an offer that was likely to be approved. However, for whatever reason, the aforementioned transaction did not go through.
Morgan Stanley is not the first or last organisation to have shown interest in purchasing or investing in Bithumb. Indeed, financial institutions such as Visa and Deutsche Bank have previously indicated interest in the firm, but have declined to comment further.
Surprisingly, a crypto-giant might be contemplating taking a leap here. According to a Binance spokesperson based in South Korea,
“We are always open considering strategic partnerships and investments at any given time. We will certainly reach out and if and when we are ready to share an update”
This is an intriguing comment, particularly in light of two even more intriguing developments. Binance South Korea halted all operations less than three months ago, citing poor liquidity and transaction volumes. It had already been in service for eight months.
In March 2020, OKEx Korea announced that it, too, will be shutting down.