Blockchain Exchange Alliance, a Singapore-based holding firm, who has a controlling stake in major crypto exchange Bithumb, is planning to get listed in the United States via acquiring a publicly traded company in the country.
According to a CNBC report published on Jan. 22, Blockchain Industries, a publicly-traded holding company in the U.S. has announced that it had a binding letter of intent with Blockchain Exchange Alliance. The reverse merger, i.e. acquiring a publicly-traded company is definitely a faster way to take a company public in comparison to a traditional Initial Public Offering (IPO).
If the reverse merger is successful, it would be the first instance of a cryptocurrency exchange going public. An unnamed source informed the publication that Blockchain Exchange Alliance has had considered filing a public offering in Singapore, but it did not want to go through the two-year waiting period to complete an IPO.
The source further adds that the merger will eventually “up-list” from over-the-counter (OTC) markets to the New York Stock Exchange or Nasdaq. Mike Novogratz, a well-known crypto bull and an ex-hedge fund manager at Fortress Investment Group, used a similar approach, reverse merger to list his crypto investment bank on the Canadian stock market in 2018.
Novogratz firstly bought a crypto start-up called Coin Capital and then went ahead with a reverse takeover with Canadian shell company Bradmer Pharmaceuticals. Subsequently, the company was renamed as Galaxy Digital Holdings.