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Reverse Merger for Crypto Exchange?

Traders Magazine Online News, January 29, 2019

John D'Antona Jr.

One of the world's largest crypto exchanges looks to go public in the US through a reverse merger.

As reported by CNBC, Blockchain Industries announced it has signed a binding letter of intent to merge with Singapore-based Blockchain Exchange. The deal would mark the first cryptocurrency exchange to be publicly traded in the U.S.

The plan involves the nonconventional route of buying an existing public company, then listing through a reverse merger which could be much faster than an initial public offering, or IPO.

Singapore-based holding company BTHMB is looking to list in the U.S. by acquiring a publicly traded company here. On Tuesday, a holding company called Blockchain Industries, which trades publicly on U.S. over-the-counter markets under the ticker BCII, announced it had signed a binding letter of intent with BTHMB, which is being renamed Blockchain Exchange Alliance.

This so-called reverse merger is a nonconventional way of getting into the public markets and could be much faster than an initial public offering, or IPO. A source told CNBC that Blockchain Exchange Alliance had contemplated listing in Singapore but did not want to wait the year or two it might take to complete an IPO.

The combined company plans to eventually "up-list," meaning it would move from over-the-counter markets, which are known for trading penny stocks, to the New York Stock Exchange or Nasdaq, sources told CNBC. That would also require the company to meet stiffer listing requirements.

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