Blockchain firm Valereum gets nod to acquire Gibraltar Stock Exchange

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Blockchain company Valereum (6TJ.SG) has received regulatory approval from the Gibraltar Financial Services Commission to purchase the Gibraltar Stock Exchange (GSX).

The company’s disclosure statement did not reveal the amount involved in the acquisition but predicts that the deal will be completed in early 2023. Valereum noted that the purpose of the move is to “expand the access to European capital for early-stage and small-cap companies in the Middle East, India, and Africa.”

“There is a significant gap in the available small cap markets where we will provide solutions building from the ecosystem of accelerators and incubators through a full suite of private and public markets,” read Valereum’s statement.

The firm added that it has plans to launch a non-fungible token (NFT) strategy in Q1 of 2023 to merge real-world assets with digital collectibles in addition to the lofty goals of bridging the gap between “fiat and crypto.” Richard Poulden, head of Valereum, will head the merged company while Patrick L Young was named as executive director.

“Just as The Rock of Gibraltar has been a physical port for centuries, GSX will encourage a new generation of companies and assets to see Gibraltar as a virtual node in financial trade,” Poulden said.

He added that the new entity would rely on state-of-the-art technology, and with the composition of an excellent board, things are falling in place for the company to achieve its goals.

In August, Valereum sold its BTC mining assets to raise money for expansion and potentially fund the GSX deal. Valereum has been pursuing the deal since the start of the year with an initial plan to acquire 90% of GSX.

Bridging the gap between fiat and digital assets

Valereum describes itself as a firm “creating a seamless NFT bridge between fiat and crypto securities.” The firm is a holding company listed on the AQUIS Stock Exchange in London and has a keen focus on linking mainstream assets denominated in USD or GBP with virtual currencies.

Since the announcement, the share price of the company climbed by an impressive 30% to trade at $25.41.

Acquisitions in the digital asset industry have been a rocky affair, especially as the markets are in the throes of dwindling prices. Thailand’s oldest bank SCBX PLC pulled the plug on a proposed $500 million acquisition of Bitkub on the grounds that regulatory issues were yet to be sorted out.

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