Binance CEO Changpeng “CZ” Zhao says the exchange devoted one-quarter of its profits last year to investment opportunities.
Speaking in an interview with the South China Morning Post (SCMP), CZ explained Binance’s approach to mergers and acquisitions.
He said,
In Asia, we are interested in exchanges that have existing banking relationships, which enable them to accept trading in local fiat currencies.
Binance recently acquired crypto price aggregator CoinMarketCap in a deal reportedly worth up to $400 million. CZ revealed that Binance attempts to spend one-quarter of its profits each year on investment opportunities.
He said,
We usually spend about a quarter of our profit on investment opportunities every year, as we grow our portfolio of businesses beyond just trading.
Binance, the world’s largest cryptocurrency exchange, made a reported $180 million in net profit in the final quarter of 2019.
Despite Binance’s activity, the industry of cryptocurrency witnessed a 76 percent decline in mergers & acquisitions (M&As) in 2019. The SCMP report claims the majority of the $451 million generated in M&A transactions last year involved exchanges and payment services.
Featured Image Credit: Photo via Pixabay.com
