According to reports by Bloomberg, Leon Li, the creator of Huobi, is planning to sell about 60% of the exchange’s holding which is estimated to be worth over $3 billion.
Bloomberg said that the CEO of Huobi spoke with financiers several times. About 60% of the Shares are up for sale. The founder of Tron, Justin Sun, and FTX Sam Bankman-Fried are apparently competing for this opportunity. They have had early discussions about the share transfer with Huobi.
The deal was confirmed by a spokeswoman for Huobi. He didn’t want to get too explicit though. In relation to the stake sale, it was claimed that Leon Li is meeting with a number of international organizations.
The spokeswoman emphasized that Li expects the new stakeholder will provide the exchange with more clout and resources. Huobi will be valued as a brand, and they will invest more money in it.
According to the report, FTX’s representative declined to comment. Justin Sun, though, texted back in response. He claimed that there have been no discussions on the sale with Huobi Chief.
In a shareholder meeting earlier, the exchange’s owners ZhenFund and Sequoia China acknowledged Li’s choice. A settlement can be reached before the end of July, they claimed. A shareholder said that Huobi’s CEO is aiming for a valuation of around $3 billion. This implies that the deal may have a value of more than $1 billion.
It continued by saying that it is yet unknown whether Huobi Technology Holdings Ltd, which is listed in Hong Kong, will be a part of this takeover. The company is an affiliate that manages investments in digital assets for investors and possesses a license from Hong Kong’s securities regulator.
