Binance: CZ Dismisses Sale Rumors, Leaves Door Open to Minority Stakes

Binance founder and former CEO Changpeng 'CZ' Zhao has dismissed rumors suggesting that the cryptocurrency exchange is seeking a buyer. However, he has left the door open to the possibility of selling minority stakes in the company to investors over time.

CZ addressed the speculation in a social media post on Feb. 17, attributing the rumors to misinformation spread by a competitor in Asia. He clarified that Binance is not planning a full sale but may consider allowing external investors to acquire small ownership stakes in the future.

CZ stated, "Some lowly self-perceived competitor in Asia is spreading misinformation about Binance (CEX) for sale." He added, "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, confirming that the exchange frequently receives investor interest and remains open to potential mergers and acquisitions. However, she emphasized that there are no plans to dilute the company's shareholding at this time.

The rumors about the sale began last week after users noticed sharp reductions in Binance's 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 exchange's financial health.

Binance clarified that the asset movements were adjustments in the company's treasury accounting process and not indicative of a sale or financial instability. The exchange also confirmed that all user assets remain fully backed on a 1:1 basis.

Despite regulatory and legal pressures, Binance remains the world's largest cryptocurrency exchange by trading volume, processing billions of dollars in transactions daily. However, it faces increasing competition from other centralized exchanges (CEXs).

Some industry analysts suggest that Binance's 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 world's most influential cryptocurrency exchange.