Brazilian bitcoin exchange Foxbit has announced the acquisition of Bitinvest, a fellow Brazilian exchange and payment processing company, in a deal valued at under $1 million. The acquisition is a strategic move to grow Foxbit's customer base in the region and strengthen its business operations.
Acquisition Details and Account Migration
According to Foxbit, the Bitinvest website has already been redirected to Foxbit's platform. All Bitinvest customer accounts will be migrated over, preserving existing account balances. While the exact purchase price was not disclosed, sources confirm it was below the $1 million mark.
Foxbit's Platform and Business Model
Foxbit allows users to buy and sell bitcoins through its online exchange trading platform. Customers can fund their accounts via direct bank transfers (TED, DOC) using the Brazilian Real (BRL). Once verified, users can start trading. Notably, Foxbit operates as an open-source white-label exchange in partnership with BlinkTrade.
Brazilian Market Landscape and Future Outlook
João Paulo Oliveira, Foxbit's chief blockchain officer, told CoinDesk that additional acquisitions are expected as the Brazilian market matures. “We are in an interesting position,” Oliveira said. “As the bitcoin ecosystem grows, exchanges that are not growing will be less competitive. It is a matter of process.” Currently, other bitcoin exchanges serving Brazil include CoinBR, FlowBTC, Basebit, Bitcoin To You, and Mercado Bitcoin.
Industry Implications
This acquisition, announced in early August 2016, reflects a broader trend of consolidation in the nascent Brazilian cryptocurrency market. By absorbing Bitinvest's user base and technical infrastructure, Foxbit aims to build a stronger competitive moat. Industry observers believe similar M&A activity will increase as regulatory clarity improves and the ecosystem matures.