Huobi Seeks To Sell 60% Stake; SBF, Justin Sun In the Race

Huobi founder Leon Li is reportedly seeking to sell most of his stakes in the exchange. This deal can be valued at around $3 billion making it the largest buyout in the crypto market history.

SBF to takeover Huobi?

According to Bloomberg’s report, Huobi’s chief had multiple dialogues with financiers. He is seeking to sell around 60% of the Shares. However, Sam Bankman-Fried’s FTX and Tron founder Justin Sun are reportedly in the race to grab this opportunity. They have been in preliminary contact with Huobi regarding the share transfer.

A Huobi spokesperson gave out the confirmation regarding the deal. However, he declined to give specific details. It mentioned that Leon Li is meeting several international entities concerning the stake sale.

The spokesperson highlighted that Li hopes that the new shareholder will bring more power and resources to the exchange. While they will value Huobi as a brand and indulge more capital in it.

The report stated that FTX’s spokesperson declined to comment on the matter. However, Justin Sun replied in a text message. He said that he hasn’t had any negotiations with Huobi Cheif regarding the sale.

Is this a crypto meltdown effect?

Earlier, the exchange’s backers ZhenFund and Sequoia China mentioned Li’s decision in a shareholder’s meeting. They said that a deal can be done by the end of July. While one shareholder suggested that Huobi’s chief is seeking a valuation near $3 billion. This suggests that the deal could be valued at over $1 billion.

It added that it is still unclear whether this takeover will involve Huobi Technology Holdings Ltd which is listed in Hong Kong. The firm is the affiliate than holds a license issued by Hong Kong’s securities regulator and manages digital assets investments for the investors.

Meanwhile, some of the crypto biggies are taking advantage of this recent market meltdown by buying troubled firms.

Ashish believes in Decentralisation and has a keen interest in evolving Blockchain technology, Cryptocurrency ecosystem, and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he is not writing, he is playing video games, watching some thriller movie, or is out for some outdoor sports. Reach me at [email protected]

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