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Highlights
- Acquisition of Cake Pte Ltd and Cake DeFi UAB adds approximately 50,000 active crypto users to GST's GS20 Exchange.
- Deal enhances technology stack for seamless cross-border crypto and fiat payments.
- GST aims to leverage Cake's established market presence in the DACH region for substantial revenue growth.
GSTechnologies Limited (LSE:GST), a fintech company focused on digital asset solutions, has announced the acquisition of Cake Pte Ltd and Cake DeFi UAB ("CAKE"). The purchase, completed via GST’s wholly owned subsidiary GS Fintech UAB, aligns with the company’s strategy to enhance the international reach and capabilities of its GS20 Exchange platform. The acquisition terms involve an undisclosed cash consideration.
Strengthening the GS20 Exchange
This acquisition positions GST to significantly scale its GS20 Exchange platform, which is a cornerstone of the company's GS Money initiative. Specifically, the deal will:
- Expand the GS20 Exchange’s active user base by adding approximately 50,000 active crypto users from CAKE’s platform.
- Enhance the exchange's technology stack to ensure seamless cross-border crypto-asset trades and fiat currency settlements.
- Create opportunities for substantial revenue growth, leveraging CAKE’s historical financial performance and its established presence in the DACH region (Germany, Austria, and Switzerland).
According to GST’s directors, the acquisition represents a pivotal step in strengthening the GS20 Exchange’s offering for both retail and institutional clients while improving scalability and operational efficiency.
About Cake Pte Ltd and Its Capabilities
Founded in 2019, CAKE operates the popular cryptocurrency investment platform Bake, which is accessible via its website (bake.io) and mobile apps for iOS and Android. The platform has a robust user base, with approximately:
- 700,000 registered users,
- 100,000 funded users, and
- 50,000 users holding US$80 million in digital assets as of November 2024.
Bake offers innovative investment strategies across a variety of digital assets, establishing itself as a trusted player in the crypto space, particularly within the DACH region.
Acquisition Details
The transaction includes the transfer of critical assets, such as:
- The bake.io domain, source code, and IT infrastructure required to operate Bake.
- Intellectual property rights, including trademarks and trade names for Cake DeFi and Bake.
- Customer lists and digital assets managed by the platform.
Additionally, GST plans to integrate key personnel from CAKE into its operations prior to the transaction's completion. This includes teams focused on finance, treasury, software engineering, and compliance. The majority of CAKE’s workforce is based in Singapore, which will provide GST with a strategic foothold in Asia’s digital assets market.
