Bithumb Signs a Binding Letter of Intent to Merge with Blockchain Industries

Bithumb Signs a Binding Letter of Intent to Merge with Blockchain Industries

Bithumb, one of the world’s largest crypto exchanges, has made a major step towards listing in the United States.

Earlier this week it was announced that the  Singapore-based BTHMB, which owns Bithumb, signed a binding letter of intent (LOI) to merge with Blockchain Industries, Inc., which trades publicly on US markets (ticker: BCII).

Blockchain Industries is a merchant bank focused on the international blockchain and cryptocurrency sectors.

Once the merger is completed, Bithumb may become the first of the major crypto exchanges to be listed on the US markets. The plans are for the company to be renamed into “Blockchain Exchange Alliance”.

The ultimate goal of the company is to get listed on the two major US stock exchanges – NASDAQ or NYSE.

The aim of the partnership is to complete the “reverse merger”, or reverse IPO, which means the private company is acquiring the public company in order to skip the lengthy and complicated process of going public through the conventional IPO.

“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 BTHMB/BXA, we expect to bring more advanced technology and better compliance practices into the public marketplace via a consolidated focus,” said Patrick Moynihan, the CEO of Blockchain Industries.

According to CNBC, this move has been seen as a reserve option, as the primary one – listing on Singapore stock exchange – has been eliminated by BTHMB’s management due to the lengthy process of completing the IPO.

“BTHMB/BXA is a global exchange alliance and the United States is a key factor to any global initiative. By unifying our businesses, we benefit from the focused expertise of Blockchain Industries. As a result, we have tremendous growth opportunity in this region, and we expect quality results from this merger,” said Dr. Byung Gun Kim, the CEO of BTHMB/BXA.

According to the press release, the aim is to complete the takeover by March 1st, 2019, after which details will be disclosed.

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