One of the trends that have been seen so far this year with leading cryptocurrency firms is their appetite to make acquisitions or make significant investments in other companies.
They want to take their offerings to the next level and they look out for those companies which are leaders in their space and could help them to make a significant improvement on their current offering.
Huobi is one of the leading cryptocurrency exchanges and they have now become a majority shareholder in Patronics Holding Ltd., which is an investment holding firm that is based in Hong Kong.
With their investment that was in the region of $77 million, they now hold a stake of about 71.67% of the entire business.
These negotiations between the two parties had been ongoing for a number of weeks and their shares were stopped being traded on the Hong Kong stock exchange so the negotiation process could continue unhindered by price action concerns.
The request to have trading halted was approved as part of the legislation in Hong Kong which concerns takeovers and mergers.
Once they finally agreed on the final deal, there was an announcement made by each of the involved parties and this saw the company shares being allowed to be traded once more. They went into some of the details of this new relationship.
The expertise of Patronics Holdings Ltd lies in the manufacturing electronics and power products which cover many different types of products. They are a multinational company that has a number of subsidiaries across the world.
Huobi is currently in the process of having a launch on the secondary market which would be a key milestone for them.
Patronics have also been growing as of late and they have seen gains in their share price of more than 150% in a 12 month period, which will no doubt be bolstered following this major investment by Huobi.