LONDON: GSTechnologies Limited (LSE: GST) has announced that its subsidiary, GS Fintech UAB, will acquire Cake Pte Ltd and Cake DeFi UAB, known together as CAKE, for an undisclosed cash amount.

CAKE operates a prominent cryptocurrency investment platform called Bake, especially popular in Germany, Austria, and Switzerland. This acquisition aligns with GST’s goal to expand its GS20 Exchange platform, aiming to offer more value to both retail and institutional customers.

Highlights of the Acquisition:

– GS20 Exchange will gain around 50,000 active crypto users.

– The platform’s technology will improve, ensuring smoother cross-border cryptoasset trades and fiat currency transactions.

– Revenue growth opportunities will increase due to CAKE’s strong financial track record.

CAKE, founded in 2019, has 700,000 registered users, with 100,000 funded users and 50,000 holding about $80 million in digital assets. The acquisition includes all necessary IT infrastructure and intellectual property, such as the bake.io domain and related services. GST plans to integrate CAKE’s key personnel to maintain continuity in operations.

The acquisition is set to be completed by January 2, 2025. GS Fintech UAB has already paid a non-refundable deposit and will finalize the payment from its own funds. After completion, the vendors will assist with the transition and integration for three months.

Tone Goh, Chairman of GST, commented: “The Acquisition represents a transformative opportunity for the GS20 Exchange and GST as a whole.  By integrating CAKE’s business, we aim to deliver a more comprehensive and robust suite of services to a growing user base, particularly in Europe.  The combined capabilities of the GS20 Exchange and the acquired Bake platform will not only enhance customer experience, but also create long-term value for our shareholders.

“We expect 2025 will be a pivotal year for the cryptocurrency sector and we believe GST is extremely well positioned to take advantage of these market dynamics.  I look forward to providing further updates in due course as we continue on our mission to deliver innovation and efficiency in the global fintech and cryptoasset sectors.”

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