Wine retailer joins BitMEX to buy stake in BitOcean crypto exchange
The Hong Kong stock exchange (HKEX) listed French Wine trading company, Madison Holdings Group, is planning to buy stakes in BitOcean, a Japanese crypto exchange. According to the South China Morning Post, the acquisition will happen in partnership with the crypto trading platform, BitMEX.
Reportedly, Madison Holdings is seeking to purchase a 67.2 percent stake in BitOcean for 1.68 billion yen (about $15 million) from independent third parties. The company also plans to add $15 million in various fees. The acquisition will be made through Madison Labs.
BitMEX, the other partner in the deal is planning to offer $17.14 for a 51 percent stake in BitOcean. BitMEX made the headlines after buying out a floor in the world’s most expensive office in Hong Kong’s Central district.
BitOcean already has a legal cryptocurrency license to trade in the country by the Financial Service Agency (FSA); however, the exchange is yet to start its operations.
Madison Holdings’ chairman, Raymond Ting Pang-Wan stated that this investment is part of their diversification strategy. Ting added that collaborating with BitMEX provides them with the technology and expertise they need to develop a crypto-exchange platform. Currently, BitMEX allows for indefinite contracts and crypto futures. It also provides leverage trading. However, authorities in the country are still trying to find proper regulation for these types of transactions.
Tiny believes that blockchain and cryptocurrencies have the potential to help small businesses grow. He also believes that with strict regulations in place, the crypto market holds great promise for small businesses.
“Our wine business is doing well but is small. Creating big businesses from wine operations is hard. This is why we have to diversify into financial technology and cryptocurrencies to get better returns for our shareholders.”
This investment decision comes at a time when the crypto market has fallen beyond expectation. Many have stopped investing in the crypto space while others have been forced to lay off employees to stay afloat. Ting stated that despite the current state of the crypto market, it is the perfect time to invest in cryptocurrencies. He added that this investment’s focus is on long term goals, so current volatility is not a concern.
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