Binance Denies Sale Rumors but Considers Selling Minority Stake
The founder and former CEO of Binance, Changpeng ‘CZ’ Zhao, has dismissed rumors about the crypto exchange looking for a buyer. However, he did mention that the company is open to selling a minority stake to investors in the future.
Speculation Addressed by CZ
In a social media post on Feb. 17, CZ addressed the rumors that suggested Binance was offloading assets before a potential sale. He called the speculation misinformation spread by a competitor in Asia and stated:
“Some lowly self-perceived competitor in Asia fudding about Binance (CEX) for sale.”
Potential Investment Opportunities
While CZ denied the possibility of a full sale, he hinted at the potential for external investors to acquire small ownership stakes in Binance. He mentioned:
“Top investors have always been interested in Binance. Over time, we may allow some investments in the single-digit percentage range.”
Co-founder Yi He’s Perspective
Binance co-founder Yi He also commented on the matter, stating that the exchange frequently receives investor interest and is open to potential mergers and acquisitions. However, there are currently no plans to dilute its shareholding.
Sale Rumors and Clarifications
Last week, rumors about the sale surfaced after users noticed reductions in Binance’s crypto holdings. This led to confusion within the community regarding the exchange’s financial health. Binance clarified that the asset movements were part of the company’s treasury accounting process and not indicative of a sale. It assured users that all assets remain fully backed on a 1:1 basis.
Despite regulatory challenges and competition from other crypto exchanges, Binance remains the world’s largest exchange by trading volume. The speculation surrounding potential sales may be a strategic move to reinforce its financial position while maintaining operational independence.
Strategic Shift with Minority Stake Sales
Binance has historically maintained a private ownership structure, with CZ holding a significant stake. The consideration of selling minority stakes to external investors could signify a strategic shift for the exchange, potentially allowing institutional players to have a stake in the leading crypto platform.
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