US crypto exchange, Blockchain Industries, announced that it signed a binding letter of intent (LOI) with a Singapore exchange. Blockchain Industries wants to merge with BTHMB and become the first cryptocurrency company to go public in the U.S. The approach involves a non-conventional route of buying an existing public company, then listing through a reverse amalgamation.
US Company Blockchain Industries To Merge With Singapore’s BTHMB
Latest reports indicate that Blockchain industries published the details of a deal it signed with Singapore’s BTHMB. According to Blockchain industries, the deal is intended to merge the two companies in the US and trade publicly. BTHMB HOLDINGS Pte. Ltd has a cryptocurrency exchange subsidiary operating in Singapore. After the merger, the two companies will form Blockchain Exchange Alliance (BXA) as a publicly traded company in the US.
BXA already agreed with US regulators to place $1 million into an escrow account as a requirement of LOI. The LOI is still subject to diligence review by both parties mutual agreement on certain terms. The terms of the review include Valuation and entrance into definitive transaction documents.
Patrick Moynihan, CEO of Blockchain industries says,
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.
BXA revealed that it would leverage Blockchain industries to market and expand its operation in North America. Dr. Byung Gun Kim, CEO of BXA said,
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 focused expertise of Blockchain Industries. As a result, we have tremendous growth opportunities in this region, and we expect quality results from this in North America.
The merger hopes to eventually move from over the counter markets to the New York Stocks Exchange and NASDAQ. However, the company would have to meet all the stiffer listing requirements, regulators would throw at it.
Similar Merger Within The Cryptocurrency Scope
Recently former hedge-fund manager Mike Novogratz used a similar tactic to list his crypto merchant bank, a Canadian stock’s market. He started by buying off Coin Capital, a Canadian cryptocurrency startup then merged through a reverse takeover with Canadian Shell Company. Coin Capital merged with Bradmer Pharmaceuticals and renamed to Galaxy Digital Holdings Ltd on Canada’s TSX Venture Exchange.
However, all this did not go well with Galaxy digital, as Bitcoin affects its underlying value. During the first quarter of 2018, the company lost about $134 million, as cryptocurrencies lost half their value. Since the company first traded in August 1, 2018, GLXY dropped by approximately 36 percent.
Meanwhile, Blockchain Alliance is still confident that it would leverage its broader plans beyond Bitcoin to remain stable. The company revealed that it plans to buy up consolidated exchanges across the world. Furthermore, the company wants to create a global crypto exchange alliance which it says is already underway. The group is ambitious that it could own up 9 exchanges by the end of this year. Additionally, the group wants to have up to 40 exchanges by the end of 2020.
The cryptocurrency market generally is moving towards more regulatory compliance in 2019. It is anticipated that 2019 could become another wonderful year for cryptocurrency given the volume of positive signals.
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