Bitstamp, a veteran crypto exchange, joins forces with Galaxy Digital for capital to expand into Asian markets, European derivatives, and UK services, highlighting their commitment to global cryptocurrency enhancement.
Bitstamp is seeking to secure extra capital to expand its operational capacity. According to a report by Bloomberg on August 7, 2023, Bitstamp has enlisted Michael Novogratz’s Galaxy Digital Holdings as an advisor for its fundraising initiative, which began in late June 2023.
The funds acquired from this effort are intended to facilitate the extension of Bitstamp’s services across various Asian markets and enable the commencement of derivative trading in Europe by 2024. The report also highlights Bitstamp’s desire to broaden its offerings within the UK.
Bitstamp’s Global CEO, Jean-Baptiste Graftieaux, has affirmed that the company’s primary objective is to raise capital to enhance the range of services accessible to both institutional and retail clients involved in cryptocurrency. Graftieaux emphasized that Bitstamp is not interested in acquisition offers and is not actively pursuing the sale of the business.
Bitstamp’s Expansion Plans
This announcement follows Ripple’s acquisition of a minority stake in Bitstamp during the first quarter of 2023. The purchase, publicly disclosed in late May 2023, saw Galaxy Digital, led by Michael Novogratz, serving as both an advisor and a contributor to the transaction. Bitstamp’s current efforts for commercial expansion align with the strategic directions set after the company’s acquisition by South Korean NXC-backed NXMH in 2018.
Interestingly, Bitstamp’s co-founders, Nejc Kodri and Damijan Merlak, previously indicated their lack of interest in selling or seeking investment, as capital wasn’t an immediate need. However, Kodri opportunistically sold most of his Bitstamp shares, retaining a 10% stake and his position as CEO.
Bitstamp, founded in Slovenia in 2011, now operates its headquarters in Luxembourg. It emerged as a significant contender to Mt. Gox, another dominant exchange at that time, and played a crucial role in Bitcoin trading with enduring historical significance.
Currently, Bitstamp ranks among the world’s largest cryptocurrency exchanges, evident from its substantial trading volume of approximately $127 million within the last 24 hours, based on CoinGecko data.
Moreover, Bitstamp’s U.K. arm achieved a significant milestone in June by successfully registering as a company with the Financial Conduct Authority, marking a notable advancement in its operations.