CZ refutes Binance sale rumors but open to minority stake offers over time
Binance founder and former CEO Changpeng CZ Zhao denied speculation that the crypto exchange is looking for a buyer but acknowledged that the company may consider selling a minority stake to investors in the future.
CZ addressed the rumors in a social media post on Feb. 17 after speculators suggested the exchange was offloading assets before a potential sale. He called the speculation misinformation spread by a competitor in Asia.
He stated:
Some lowly self-perceived competitor in Asia fudding about Binance (CEX) for sale.
While rejecting the notion of a full sale, CZ indicated that Binance may eventually allow external investors to acquire small ownership stakes.
According to CZ:
Top investors have always been interested in Binance. Over time, we may allow some investments in the single-digit percentage range.
Binance co-founder Yi He also commented on the matter, saying the exchange frequently receives investor interest and remains open to potential mergers and acquisitions. However, there are no plans to dilute its shareholding at this time.
Sale rumors
Rumors about the sale began last week after users noticed sharp reductions in the exchanges crypto holdings, which some believed to be sales of major assets like Bitcoin (BTC). This led to confusion and uncertainty in the community regarding the exchanges financial health.
In response, Binance clarified that the asset movements were adjustments in the companys treasury accounting process and not indicative of a sale or financial stability. It added that all user assets remain fully backed on a 1:1 basis.
However, the speculation intensified after a viral Chinese social media post reasserted that Binance was planning a potential sale due to regulatory challenges and a shift toward DEXs. The post did not specify a potential buyer.
Despite regulatory and legal pressures, Binance remains the worlds largest crypto exchange by trading volume, processing billions of dollars in transactions daily. However, it faces increasing competition from other CEXs.
Some analysts suggest that Binances openness to minority stake sales may reflect a broader strategy to reinforce its financial position while maintaining operational independence.
Binance has historically maintained a private ownership structure, with CZ holding a significant stake in the company. The prospect of outside investment could mark a strategic shift, potentially giving institutional players a foothold in the worlds most influential crypto exchange.
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Text source: CryptoSlate
