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 was expected to acquire 73.73 percent of Pantronics, but as per the announcement by HKEx’s, Huobi and Fission Capital took a stake of 66.26% and 5.41% respectively. The merger initiated by Huobi is related is their vision of starting a new blockchain entity. Fission merger is expected to bring its blockchain and HK Capital Market expertise to the new 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.
As per the global stat, Huobi processed 1 billion USD in the trade by March 2018. The Huobi-Pantronics acquisition is a $77 million deal making it one of the largest shareholder of a publicly listed firm on Hong Kong Stock Exchange. Utilizing the process of reverse takeover, Huobi can now enter the secondary financial market of Hong Kong.