Huobi Global Acquired by About Capital as Founder Leon Li Steps Down
Huobi Global Acquired by About Capital
Hong Kong-based cryptocurrency exchange Huobi Global has announced its acquisition by About Capital’s M&A Fund, following founder Leon Li’s decision to step down as a shareholder. Li, who also resigned as CEO, will no longer hold any influence over the company’s operations.
Reasons Behind the Sale
Li’s exit is reportedly driven by multiple factors, including his reluctance to leave China, police investigations in 2020, and unsustainable business conditions in 2022. Speculations suggest Li had been seeking a buyer for Huobi for months, initially offering a 60% stake for at least $1 billion. However, the exact terms of the deal with About Capital remain undisclosed.
Implications of the Acquisition
The acquisition is expected to have minimal impact on Huobi’s daily trading operations, with About Capital set to control a majority stake. The exchange has emphasized its commitment to expanding globally, leveraging the new ownership to secure additional capital for margin and risk management funds.
Future Plans
Leon Li expressed optimism about the acquisition, stating it will bolster Huobi’s globalization efforts, which accelerated after its exit from the Chinese mainland market in 2021. The exchange aims to use this influx of capital to strengthen its position in the competitive cryptocurrency market.
This strategic move highlights the evolving landscape of the cryptocurrency industry, as exchanges seek stability and growth through consolidation and investment.
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