(Kitco News) - Leon Li, the majority shareholder of Huobi Global, has agreed to sell his entire stake in the crypto exchange to About Capital – a Hong Kong-based investment firm that is reportedly led by Tron founder Justin Sun.
Once the transaction is complete, About Capital's buyout vehicle will control the majority stake in Huobi Global, according to a statement released by Huobi. The transfer will only involve the change of controlling shareholder and will have no impact on Huobi’s core operation and business management teams.
A statement from About Capital indicates that following the acquisition, “Huobi Global will embrace a series of new international brand promotion and business expansion initiatives, including a global strategic advisory board led by leading industry figures, the injection of sufficient capital in margin and risk provision fund, as well as measures to further enhance competitiveness.”
These initiatives are intended to help position Huobi Global to provide top-level trading and investment services to international investors.
Huobi is one of the industry's leading crypto exchanges, ranking eighth by total volume according to analytics firm Messari, with nearly $140 million in spot volume over the past 24 hours.
Amid speculation that Sun spearheaded the acquisition, the Tron founder denied that he participated in the sale, but has confirmed that he has been appointed as a member of the Global Advisory Board of Huobi Global to “work with industry, academic, and policy leaders to help guide and grow this innovative, vibrant, and resilient organization in its latest chapter of global expansion.”
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Sun will be joined in his advisory role by Valkyrie Investment CEO Leah Wald and About Capital founder Ted Chen. Huobi Global is headquartered in Seychelles and has regional affiliates in various locations around the world, with its Singapore location serving as the firm's Asian headquarters.
The new deal will have no impact on Huobi’s core operations and will instead focus on international brand promotion and business expansion.
Leon Li, Huobi’s founder and CEO, had been exploring the sale of his majority stake in the exchange for a while, with Bloomberg reporting in August that Li was looking to sell 60% of his stake with a company valuation of $2 to $3 billion.
