Cryptocurrency exchanges running into partnerships with stock trading organizations to be part of mainstream trading has become a trend. Huobi, the Singapore based cryptocurrency exchange officially announced on 29th August the acquisition of controlling stock interest in Pantronics Holdings Ltd.
Pantronics is a Hong-Kong based holdings organization and is listed on the Hong-Kong stock Exchange (HKEx). Since August 22nd the electronics manufacturer had stopped share trading as the merger with cryptocurrency exchange Huobi was in process.
Crypto exchange Huobi planned to acquire 73.73 percent of Pantronics, but HKEx announced that Huobi and Fission Capital took stakes of 66.26% and 5.41%, respectively. Huobi initiated the merger to pursue its vision of launching a new blockchain entity. Fission Capital expects to contribute its blockchain and HK capital market expertise to the project.
Officials of Crypto Exchange have remained tight-lipped about the new project and merger. The information of the facts has come from HKEx only. The deal Huobi and Pantronics went into is a characteristic trend of crypto exchanges to avoid the complex process of being a public-held entity.
The crypto exchange Huobi will automatically become a whole part of the Hong Kong Stock Exchange with this merger. With this merger, Huobi has its offices in Hong Kong, Korea, Japan, and the US. Huobi was one of the largest crypto exchanges in China, but due to Bitcoin regulations in China, it stopped the operational website in China.
According to global statistics, Huobi had already processed $1 billion in trades by March 2018. Furthermore, the Huobi-Pantronics acquisition, valued at $77 million, positioned Huobi as one of the largest shareholders in a publicly listed company on the Hong Kong Stock Exchange. By leveraging a reverse takeover, Huobi now gains access to Hong Kong’s secondary financial market, marking a significant step in its expansion strategy.
