Binance Discusses Selling Gopax Stake to Korean Cloud Provider Megazone

Binance and Megazone logos with a cryptocurrency exchange background

Binance Nears Deal to Sell Gopax Stake to Korean Cloud Provider Megazone

Binance’s arrangement is now in the latter stages of the talks in FAIFimited AD, preparing the sale of its dominant stake in Gopax to Megazone Cloud, a thriving serverless computing infrastructure company. In agreement with the local news, it will be reached in the process of its examining by the authorities and transaction to complete by the end of the month of July.

Binance’s Strategic Stake Reduction

Last year, Binance bought 72.26% Gopax shares in February as per the cryptocalendar. The Taiwanese mammoth is going to pulse Streami from 72.6% to about 10% which will be the estimated maximum percentage. The reason behind the move of the crypto king is also the efforts of the company that demanded its various improvements including its administration of the financial authorities.

Background on Gopax and Potential Buyers

Initially, they were quite interested in Gopax and the majority of the stocks were taken out for the sake of the return plan to the South Korean market which had been exited in 2021, expressing it through the acquisition of the majority of the shareholdings.

After the acquisition, only the information about the initiative remained undisclosed. Very prominent name in the company was Streami Inc., the parent of Gopax having certain liabilities with another company that is in the insolvency process namely, Genesis Global. The Global Digital Currency Group was the second-largest shareholder of Gopax next to Streami.

Prior to joining Megazone, BF Labs, which later turned into City Labs, was seen as a possible buyer on the scene. The BF Labs initially only invested in Streami and hence received an 8.55% stake in the company in last year’s September. It became the second-largest shareholder apart from Binance. In contrast to the first setting, BF Labs decided not to increase their shareholding due to the fact they were unable to raise the necessary funds at the time.


Commentary and Future Implications

A Megazone representative spoke to the Chosun Daily and later also released a comment saying that the purchase of a share in the company is subject to regulatory approval process. When it’s executed this deal will also change the composition and structure of the company and its new business lines. Gopax is about to be taken over by Binance, because Binance is reorganizing its corporate structure due to the pressure from regulatory authorities. The company has decided to sell a large part of its Gopax stock, that is an inevitable step because of the dynamic nature of the crypto market. It indicates that the crypto industry remains in the process of consolidating and executing strategic realignments as it goes through the changes in regulation and market dynamics.