A cryptocurrency company that just spent $700 million for the naming rights to the Los Angeles Lakers stadium has extended its acquisition frenzy by acquiring London-based exchanges.
Crypto.com buys two exchanges from IG group for $216 Million
Crypto.com, which has recently made news for its naming-rights deals, is now increasing its footprint in another way by purchasing two exchanges from IG Group Holdings Plc, a financial services provider.
The cryptocurrency platform IG Group has agreed to buy the North American Derivatives Exchange Inc. and the Small Exchange Inc. for $216 million in cash, according to a statement.
Citadel Securities, Jump Capital, Interactive Brokers Group Inc., and Peak6 Investments are among the investors in the Small Exchange, which is situated in Chicago.
It just added crypto-related futures to its product range. The Commodity Futures Trading Commission regulates Nadex, a U.S. derivatives exchange that offers products such as binary options and calls spreads.
The transaction is likely to close in the first half of 2022, subject to certain conditions, including regulatory approval, according to IG Group.
In a statement, June Felix, IG Group’s CEO, said, “This purchase supports IG’s strategic objectives by giving a significant return on the earlier investments made in Nadex and Small Exchange and now sharpening IG’s focus on building and expanding the U.S. options and futures businesses.”
The naming rights to the Los Angeles Lakers stadium were recently sold for a staggering $700 million to Crypto.com. Crypto.com is paying $216 million for two exchanges from IG Group, which has secured a 20-year arrangement to rename the Staples Center the Crypto.com Arena.
Small Exchange and the North American Derivatives Exchange, both situated in Chicago, will be purchased by Crypto.com. The all-cash transaction is expected to finalize in the first half of 2019.
Kris Marszalek, Crypto.com’s CEO, said the deal “will give our customers access to an entirely new set of financial tools ”. The company operates a cryptocurrency and NFT exchange where users can buy and sell cryptocurrencies and NFTs. Customers of Crypto.com will be able to trade futures and derivatives, which are popular among retail cryptocurrency investors, thanks to the IG partnership.
“We’re particularly happy about this purchase,” said IG CEO June Felix, “since it provides a big return on our past investments in Nadex and Small Exchange and allows us to invest more across all of our businesses”.
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Also read: Crypto firm CEOs to testify before U.S. House banking panel on Dec. 8
