Written By According to sources familiar with the matter, the investor, who has not been named, is asking for a discount on the proposed purchase price of the company. This demand has put the entire deal in jeopardy, as Zipmex struggles to navigate the situation.
Zipmex, which operates in several countries across the Asia-Pacific region, had announced its plans to be acquired by Digital Currency Group (DCG) earlier this year. DCG is a New York-based firm that invests in blockchain and cryptocurrency companies.
The deal was valued at around $100 million, according to reports, and was expected to be completed in the first quarter of 2022. However, the demand for a haircut from the unnamed investor has thrown a wrench in the works.
Sources say that Zipmex has been trying to negotiate with the investor to find a solution that is acceptable to both parties. However, the investor is said to be standing firm in their demands, leaving the future of the buyout uncertain.
This news comes at a time when the cryptocurrency market is experiencing a significant downturn, with prices for Bitcoin and other digital assets falling sharply in recent weeks. This downturn has caused some investors to become more cautious and demand greater assurances before committing to deals.
Zipmex has not commented publicly on the situation, and DCG declined to provide a statement when contacted by journalists.
The situation highlights the challenges faced by companies operating in the cryptocurrency space, where market volatility and regulatory uncertainty can make it difficult to secure funding and pursue growth opportunities.
However, despite these challenges, Zipmex has been making progress in expanding its operations in recent months. In August, the company announced that it had secured a license to operate in Thailand, adding to its existing operations in Australia, Indonesia, and Singapore.
Zipmex has also been working to expand its range of services, offering trading in a range of cryptocurrencies beyond just Bitcoin and Ethereum. The company has also launched its own native token, ZIP, which can be used to pay for trading fees and other services on the platform.
The current situation is a setback for Zipmex, but the company remains well-positioned to benefit from the growing interest in cryptocurrency trading and investing across the Asia-Pacific region. Whether it can navigate the current challenges and complete its planned buyout remains to be seen.
