Investment bank Morgan Stanley reportedly wants to buy parts of Korean bitcoin exchange Bithumb
According to reputable sources, investment bank Morgan Stanley plans to invest between $254 million and $441 million.
American multinational investment bank Morgan Stanley is currently in talks to acquire a stake in top South Korean cryptocurrency exchange Bithumb, news portal Naver reported on Friday.
„Morgan Stanley was involved in the acquisition of Bithumb,“ a senior Bithumb spokesperson reportedly said.
According to the report, Morgan Stanley is considering Bitcoin Future investing between 300 billion and 500 billion Korean won ($254 million and $441 million respectively) through Vidente, which owns a 10 per cent stake in Bithumb.
„The reason Morgan Stanley used Vidente is because they understood that Vidente had the right to negotiate a preferential sale to acquire Bithumb shares,“ another source said.
According to the publication, talks with the new investor began amid difficulties over a deal with NXC Corporation, which owns gaming company Nexon and acquired Bitstamp, Europe’s oldest exchange, in 2018.
While NXC has also shown interest in buying a stake, Morgan Stanley’s offer has sidelined it, the outlet comments.
Notably, Bithumb already has a history of acquisition deals falling through as its chairman Lee Jung-hoon, who indirectly owns a majority stake in the exchange, seeks to liquidate his position.
In 2019, for example, Bithumb was in talks with Singapore-based BK Global Consortium, but that ultimately went nowhere
Rumours suggest that Morgan Stanley is in the process of launching three new bitcoin funds that will allow accredited institutional investors to participate in bitcoin’s price volatility (go to Buy Bitcoin at eToro guide).
While the bank has previously been cautious about cryptocurrencies, its clients are said to have been „clamouring“ for new crypto-focused services following Bitcoin’s meteoric rise to almost $60,000 in recent months.
The new funds could tentatively launch next month, as Morgan Stanley advisers are currently undergoing cryptocurrency-focused training to help their clients better understand the emerging digital asset market.