As reported by CNBC, U.S.-based Blockchain Industries announced that it has signed a binding letter of intent (LOI) with BTHMB HOLDINGS, the overarching company behind South Korea’s leading crypto exchange, Bithumb.
Liquidity, Accessibility, and Expansion
Blockchain Industries, which trades publicly in the U.S. via OTC (over-the-counter) exchanges under the ticker BCII, plans to merge with the private company, BTHMB HOLDINGS, which purportedly is soon to be renamed Blockchain Exchange Alliance (BXA).
The acquisition of a publicly-traded by a private company is known as a ‘reverse merger’. According to pundits, this sly move is a much quicker way for the privately-owned BXA to become a publicly-tradable stock on American stock exchanges, as opposed to going through the conventional method of listing through an often drawn-out initial public offering (IPO).
The move will likely garner increasing interest from the institutional investment world, thus improving liquidity, while also stimulating expansion within the broader crypto and blockchain sector.
Chief executive of Blockchain Industries, Patrick Moynihan, stated:
“We are thrilled to be part of this important initiative that is expected to bring liquidity, accessibility, and expansion to the blockchain industry. By merging with BXA, we expect to bring more advanced technology and better compliance practices into the public marketplace via a consolidated focus.”
Onwards And Upwards
Once the merger is complete, the newly-formed company will look to move from trading via over-the-counter markets to promoting themselves as a firm traded on established exchanges, such as the Nasdaq & the Intercontinental Exchange-owned New York Stock Exchange (NYSE).
The transition from being traded on OTC exchanges to a major exchange is known as “up-listing.” This ambition would see Bithumb become the first publicly-traded cryptocurrency exchange in American markets.
According to CNBC who broke the news, BXA has envisioned itself becoming a global powerhouse within the cryptocurrency and blockchain industries, suggesting that the company has “plans on creating a global crypto exchange alliance.” The Alliance is apparently looking to acquire around nine exchanges by the end of this year, and up to forty by the end of 2020.
BTHMB Holdings’ intentions are clearly aimed at gaining a stronger foothold within the states, with the firm’s chief executive, Dr. Byung Gun Kim, recently stating that:
“BXA is a global exchange alliance and the United States is a key factor to any global initiative.”
Kim went on to suggest that the unification between Blockchain Industries and BXA will enhance both companies with “tremendous growth opportunities,” going on to state that he expects “quality results” in the North American market.
Big Moves Despite Crypto Winter
Significant advances within the crypto and blockchain industries are appearing to become ever-more frequent, despite the current market conditions.
As recently reported by Live Coin Watch, major crypto exchange, Bitstamp, has recently announced it is working in partnership with Dukascopy, as Switzerland-based online banking platform. The partnership will allow Dukascopy’s client base to send, receive and exchange Bitcoin, Bitcoin Cash, Ethereum, and Litecoin for US dollars, thus allowing them to trade on Swiss FX markets.
The number of blockchain-related companies is also on the rise in the Swiss Alps. As reported last week, the “Crypto Valley” saw the headcount of blockchain firms grow by a whopping 121, a 20% increase within three months’ time.
Title Image Courtesy of Marco Verch Via Flickr