Baidus plans to buy bitcoin exchange Baidushan for US$5 billion, Baidyu said on Tuesday.
The South Korean bitcoin exchange, which has struggled to keep up with the meteoric rise of the cryptocurrency, said it was “fully committed” to its long-term success and would expand into more markets.
Baidu was founded in 2006 and has been building out its business, focusing on e-commerce, payment, and payments processing.
It was the second-largest bitcoin exchange in South Korea in 2018, according to data from CoinMarketCap.com, with more than $4 billion in transactions in 2018.
Baiduo was valued at $1.1 billion at the end of March.
Baidus, which recently launched a mobile app, said in a statement on Tuesday that it had signed a strategic collaboration agreement with Baidhu’s technology arm Baidyuan.
In the deal, Biddys said Baidys “strong focus on digital payments” would enable it to “exclusively serve the Baiduz marketplace”.
The company said that it expects to invest US$1.5 billion in Baiduyuan, adding that it would continue to invest in Bidu’s mobile payments service.
While bitcoin is still a small part of Baidum’s overall business, Biduz is one of the world’s largest bitcoin exchanges, having nearly $5 billion worth of transactions last year.
“We are excited to be able to partner with Biddyuan, a leading e-payment company, on this important project,” said Biddyu CEO Joo Won-hyun.
Bitcoin is traded on exchanges such as Bitfinex and Coinone.
At the moment, Biddingu is based in South Korean, though it plans to expand its presence in other countries.
Its stock has risen on the news that the Biddinguan board had approved a deal with Bitmain, which would see the exchange buy Baiduan for US $5.7 billion.
Bitmain is one part of China’s Baidumin group, which is the world leader in bitcoin trading and trading.
The group is also the largest buyer and seller of bitcoin on Chinese exchanges.
Chinese regulators have been scrutinising the market for months after a spate of violent incidents involving bitcoin users.
On Monday, a man was arrested in Shanghai after he allegedly attempted to buy $US20 worth of bitcoin with an ATMs located near a bank, with police saying he had planned to buy more than 50 bitcoins from the ATM machine.
A Baidbu spokesman declined to comment on the reported price of the deal.
Earlier on Tuesday, the US Federal Trade Commission said it had begun to investigate a bid by Bitmain to buy a majority stake in the Chinese bitcoin exchange.
Regulators are investigating a bid to buy majority stake at Baiduban (AFP Photo/John Geddes)Earlier on Monday, the Federal Trade Commision said it would launch an investigation into a bid from Bitmain Technologies Inc. to buy Bitminer Semiconductor Ltd’s (BMSL) majority stake.