BK Global Consortium, a Singapore based company acquired Bithumb which is a well-known South Korean cryptocurrency exchange by buying a controlling share from the exchange about a year ago.
The consortium was led by the plastic surgeon, Kim Byung-gun who reportedly bought 50% plus one share of the exchange’s Bitcoin holding company for about 400 billion won, which amounted to $354.09 million.
It was reported by a news agency called Yonhap in a recent update that the sale of South Korean’s largest crypto exchanges, Bithumb was “virtually ineffective.”
As reported, the consortium hadn’t paid the entire money of acquiring the shares of the exchange. They paid an initial downpayment amount of 120 million won which is about 100 million dollars, after which the company deferred payments.
To elaborate, BK Consortium had extended the deadline for the payment since April, implying that it would increase its stake in BTC Holding Company to 70% instead of paying off the remaining balance.
Bithumb, however, seemed to be unaffected as it was revealed by an official from the exchange that the termination of the acquisition contract would not impact the company as it has been running stably from the beginning.
The official said,
“We do not know that the sale is a major shareholder problem.”
According to a local news report, it was also stated that the exchange may most likely to be sold to foreign investors in the merger and acquisition market.
There might be a possible dispute over BK Consortium downpayment only if the consortium does not pay the remaining balance and if Bithumb is sold to other investors.
Potential investors from China and America have shown interest in acquiring Bithumb.
Bitcoin can reach $25K if usage crosses 1M people: Thomas Lee
Managing Partner and Head of Research at Fundstrat Global Advisors, Tom Lee, recently made an appearance on CNBC‘s ‘Street Signs Asia‘ segment to talk about Bitcoin price movements in the future. Lee also spoke about why he thinks Bitcoin will touch $25K by 2022.
According to Lee, for an industry that’s over a decade old, these are still early days for digital assets. However, as time passes, it will become very institutional, he said. Fundstrat’s Lee added,
“Over time, it’s going to become an asset class, and once we hit that it’s actually another hockey stick.”
When asked about his prediction for the king coin’s price, Lee said that it had been established back in 2017 as a five-year prediction. According to him, the predicted goal would be easy to achieve due to cryptocurrencies being network value assets — the more people that hold it, the greater its value.
“In fact, it’s a log function, so if you double the users you get a quadrupling of value, and to go to $25,000 you essentially need a 4x rise (a little bit less than that) which means you need to double the number of people who hold Bitcoin.”
According to Lee’s estimates, there are under half a million people in the world who own and use Bitcoin widely today. He also compared Bitcoin to Internet stocks such as FAANG and attributed 70% of their returns since the IPOs to the growth of the Internet over that period of time.
“So in other words, it was a log function of the Internet growth, and that’s how cryptocurrencies are going to work. That’s just saying if you take it to a million users, you could get to $25,000.”