Madison Group Holdings, a Japanese wine-manufacturing giant, has teamed up with BitMex, a Japanese cryptocurrency exchanger to acquire majority shareholding in BitOcean- a leading crypto assets exchanger in Japan.
Every day running of the crypto assets exchange business
Madison Group is a Hong Kong based parent company engaged in the retail and wholesale trade of various wine products and has a market capitalization of over $500 Million. If the deal goes through, Madison Group, through one of its subsidiaries- Madison lab, will control 67% of the cryptocurrency exchanger in liaison with BitMex. The latter was brought on board as a qualified partner to help Madison group with the everyday technical running of the crypto assets exchange business.
Despite not having commenced exchange services officially, BitOcean is among the 16 crypto assets licensed to provide crypto currency exchange services in Japan. This licensing requirement is granted by the country’s primary financial regulator- the Financial Services Agency (FSA).
67.2% share capital acquired
Details regarding the deal were filled at the Stock Exchange of Hong Kong (SEHK) according to a press release from the South China Morning Post. The Madison Group stated in the report filled that it was planning to acquire 67.2% stake in BitOcean through its subsidiary, Madison lab. The value of the acquisition is reportedly estimated at 1.68 Billion Japanese Yen (close to $15.12 Million). On top of that there are added on business related fees amounting to around $15 Million.
Additionally, market rumor in Hong Kong has it that the deal would enjoin HDR Cadenza Management, a subsidiary of HDR Trading Global (Seychelles based). The latter company owns giant crypto derivative trading forums such as BitMEX. The rumor mill has it that HDR global might be in cohorts with Madison Labs to acquire 51% stake in a joint venture. The deal will be reportedly worth around $17.12 Million although it is still under review and yet to be finalized.
Diversifying the company’s scope
Commenting on the deal, Madison group Chair, Raymond Ting Pang-Wan said that the acquisition of interest in a crypto assets company was in line with the company’s goals of diversification. He added that the partnership with BitMEX was also important in steering forward the company’s grip on the cryptocurrency industry. CRYPTO IS COMING!