The institutional Bitcoin exchange operator LMAX Digital has signed a definitive agreement to sell 30% of its shares to investment firm JC Flowers & Co. LLC for $300 million. The deal values LMAX Group at $1 billion.
..and our role in the #FX and #crypto markets of the future. I’m excited about the many opportunities that lie ahead for us.” #fxtrading #cryptotradinghttps://t.co/XXYNyGbhfi (2/2)
— LMAX Group (@LMAX) July 15, 2021
According to the press release, the deal will close after regulatory approvals. The transaction involves a secondary sale of shares by employees of the company.
David Mercer, head of LMAX Group, will continue to lead the organisation, retaining a significant stake. JC Flowers will gain two seats on the exchange operator’s board. The parties will work together to accelerate the next phase of the company’s growth and development.
In an interview with The Block, Mercer noted that the deal would not provide the company with further cash, but the involvement of JC Flowers would help LMAX Group consolidate its position in existing markets and enter new ones.
“[JC Flowers] understands global capital markets and has valuable connections to strengthen LMAX Group’s presence in North America and Asia,” Mercer said.
LMAX Group positions itself as “an independent operator of institutional execution venues for currency and cryptocurrencies.” The company owns three platforms:
- A regulated FCA currency exchange, LMAX Exchange, which the group launched in 2010;
- a provider of currency liquidity for currency brokers and professional traders, LMAX Global, also registered with the FCA;
- an institutional spot trading platform for digital assets, LMAX Digital, launched in 2018. The operation of the Bitcoin exchange is overseen by the GFSC.
According to The Block, in June the spot trading volume on LMAX Digital exceeded $36 billion. By comparison, the figure for the cryptocurrency exchange Gemini was $7.19 billion.
In April, the Rothschilds’ investment fund RIT Capital Partners acquired a stake in the Kraken cryptocurrency exchange. The parties did not disclose the financial terms of the deal.
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