Crypto Moguls Compete for Huobi Majority Stake: Report

Sam Bankman-Fried, Justin Sun contend for founder’s stake in the cryptocurrency exchange

article-image

Justin Sun (Source: Piskev91, CC BY-SA 4.0 via Wikimedia Commons); Leon Li (Source: Huobi); Sam Bankman-Fried (Source: Cointelegraph, CC BY 3.0, via Wikimedia Commons

share

key takeaways

  • Huobi founder seeks a valuation of up to $3 billion
  • It’s unclear whether affiliate firm Huobi Technology is part of the stake sale

Leon Li, the founder and CEO of Huobi Global, is in talks with investors to sell his majority stake in the cryptocurrency exchange, Bloomberg reported on Friday, citing unnamed sources.

Li, who co-founded Huobi in 2013, reportedly wants to sell about 60% of his stake. He’s aiming for a valuation between $2 billion to $3 billion, implying that a sale could generate over $1 billion, the report said.

FTX founder Sam Bankman-Fried and Tron founder Justin Sun are among potential investors that have held preliminary discussions with Huobi about the stake sale, it added.

As one of the world’s largest crypto trading platforms, Huobi often sees daily volumes above $1 billion. The exchange slowly pulled out of servicing users in China — previously a hotbed of revenue and clientele — after the country declared crypto-related transactions illegal last year. 

It isn’t clear whether the stake involved includes the company’s Hong Kong-listed affiliate Huobi Technology, which manages digital assets for investors. Huobi Tech’s shares are down 45% so far this year, TradingView data shows.

Huobi, FTX and the Tron Network didn’t return Blockworks’ request for comment by press time.

Some well-positioned venture capitalists and investors considered the recent meltdown in cryptocurrency markets as a buying opportunity for new projects. Periods of turmoil in the market are also seen as the best time to develop new services in the crypto sector.

Bankman-Fried took it upon himself to go on a deal frenzy, announcing agreements to buy Canadian crypto trading firm Bitvo, as well as Embed Financial and BlockFi. He also offered to bail out Voyager Digital, but the bankrupt crypto lender denied what it termed his “low-ball” bid.

Sun — who prefers to be known as His Excellency after a 2021 diplomatic appointment from the Caribbean island nation of Grenada — said last month he was prepared to join Bankman-Fried in offering financial support to companies within the crypto ecosystem, saying that he and the Tron protocol he founded were “ready to serve.” Sun previously acquired a stake in crypto exchange Poloniex and file-sharing pioneer BitTorrent, now called Rainberry, for $140 million.


Get the day’s top crypto news and insights delivered to your email every evening. Subscribe to Blockworks’ free newsletter now.


Want alpha sent directly to your inbox? Get degen trade ideas, governance updates, token performance, can’t-miss tweets and more from Blockworks Research’s Daily Debrief.


Can’t wait? Get our news the fastest way possible. Join us on Telegram and follow us on Google News.


Tags

upcoming event

MON - WED, MARCH 18 - 20, 2024

Digital Asset Summit (DAS) is returning March 2024. This year’s event will be held in our nation’s capital, where industry leaders, policymakers, and institutional experts will come together to discuss the latest developments and challenges in the ever-evolving world of cryptocurrency. […]

upcoming event

MON - WED, SEPT. 11 - 13, 2023

2022 was a meme.Skeptics danced, believers believed.Eventually, newcomers turned away, drained of liquidity and hope.Now, the tide is shifting and it’s time to rebuild. Permissionless II is the brainchild of Blockworks and Bankless. It’s not just a conference, but a call […]

recent research

Cosmos Hub: ATOM Economic Zone

Research

Replicated Security, the Hub’s Validation-as-a-Service offering that went live in March, is the first step in bringing value accrual to ATOM stakers.

/

article-image

Bitcoin price predictions are meaningless, so let’s expend our prediction energy on something that actually matters

article-image

A new complaint against Elon Musk and Tesla alleges that Musk manipulated both bitcoin and dogecoin

article-image

Kenya’s central bank doesn’t seem enamored by the idea of a CBDC but hasn’t slammed the door shut yet

article-image

Both Ethereum and Solana have enjoyed vibrant DeFi environments, but this has not yet been the case for Cosmos

article-image

As Japan takes important step forward on stablecoins, industry participants say, proposed US laws around such crypto assets remain in flux

article-image

Stablecoins offer global financial access and on-chain transactions without limitations, while FedNow falls short in terms of utility, global reach and inclusivity