M7 Holdings, a company affiliated with Miami International Holdings (MIH), has acquired LedgerX, a cryptocurrency derivatives exchange. The purchase price is expected to be about $50 million. The sale comes after a tumultuous auction process with multiple postponements.
LedgerX was previously purchased by FTX.US for $298 million in 2021, which also included the acquisition of the crypto hedge fund LedgerPrime. However, FTX.US decided to sell LedgerX as part of its bankruptcy proceedings.
LedgerX generated trading and clearing revenue of $1.2 million in 2022, but had negative earnings before interest, taxes, depreciation and amortization (EBITDA) of $17 million.
Miami International Holdings already owns several equities, options, and commodities exchanges and holds licenses to operate a Commodity Futures Trading Commission (CFTC)-licensed commodities exchange. The acquisition of LedgerX will allow the company to enter into crypto trading.
LedgerX holds three CFTC-issued licenses that permit it to list futures contracts for commodities, provide clearing services, and broker futures trades for customers.
