Korea’s cryptocurrency exchange Bithumb is pushing ahead with a plan to become a publicly traded company in the U.S. in what’s called as ‘reverse IPO (initial public offering) ”.
Blockchain Industries of the U.S. said on Jan. 23 that it has signed a binding LOI, or letter of Intent with BTHMB holdings of Singapore, an owner of Bithumb exchange to merge two companies concerned.
BTHMB is also a leader in BXA, or blockchain exchange alliance, a consortium of cryptocurrency exchanges across the world.
Once merged, Bithumb will become the first Korean cryptocurrency exchange to be publicly traded in the U.S. stock market under the ownership of the merged entity, which is agreed to operate in the name of Blockchain Exchange Alliance, or BXA. The two parties aim to complete the merger deal until March 31.
The reverse IPO is referred to a roundabout way to list unlisted companies through a merger with incumbent listed companies.
Blockchain Industries, Inc. is a publicly traded merchant bank with its focus on international blockchain and cryptocurrency arenas.
As a consideration for the LOI which is subject to diligence review by both parties on certain terms including, but not limited to, valuations and the entrance into definitive transaction documents. mutual benefits were a good fit for the LOI. For BTHMB, the deal will widely crack open the door to the U.S. market, allowing it to publicly trade cryptocurrencies there. Blockchain Industries will also stand a chance to expand its portfolio exposures to cryptocurrency market.
“We are thrilled to be part of this important initiative that is expected to bring liquidity, accessibility and expansions into the blockchain industry, “ said Patrick Moynihan, CEO with Blockchain Industries.
“BXA is a global exchange alliance and the U.S. is a key factor to any global initiative,” said Kim Byung Gun, CEO with BXA. “By unifying our business, we can benefit from the focused expertise of Blockchain Industries. As a result, we will have tremendous growth opportunities in this region,” added he.