Cryptocurrency exchange BitMEX is up for sale as part of increased mergers and acquisitions activity. The process began late last year with the hire of investment bank Broadhaven Capital Partners.
Beginning of BitMEX Sale
Investment firm Broadhaven Capital Partners has been appointed to aid in the sale process of BitMEX, reportedly initiated late last year. The platform, founded by Arthur Hayes in 2014, is well-known for its derivatives products.
Rising M&A Activity in Crypto
The decision to sell BitMEX comes amid increased merger and acquisition activity in the crypto derivatives space. Industry giants like Kraken and Coinbase are showing interest in potentially acquiring leading derivatives exchange Deribit. Additionally, FalconX expanded its presence in the derivatives market this year by acquiring Arbelos Markets.
Impact on Platform's Reputation
BitMEX held a dominant position in the crypto derivatives market by popularizing perpetual futures contracts, but its reputation took a hit in 2020 when U.S. authorities accused the platform of inadequate anti-money laundering measures. Subsequently, the company pleaded guilty to the charges, resulting in the resignation of Hayes and his co-founders Ben Delo and Samuel Reed.
The sale of BitMEX could significantly impact the crypto derivatives market. It reflects the high level of merger and acquisition activity and could alter the industry's dynamics.
