An investment wine firm in Hong Kong that’s listed on the stock exchange as ‘Madison Holdings Group’, acquires 67.2 percent of the stake from BitOcean, a Japanese crypto trading platform.
BitOcean will take up the stake of Madison Lab for 1.68 billion yen (US$15.12 million) from an independent third party and the US $15 million in various fees.
The firm with an enormous reputation in fine wines industry will be a brand new player in the cryptocurrency market.
According to the South China Morning Post, the decision comes forth following the severe interest of cryptocurrency trading across Japan.
Japan represents about 20 percent of bitcoin trading worldwide. Japan and the US are the only two markets that have a licensing system for such trading platforms. The firm wanted to invest in a platform that was under proper regulation.
As a plan to diversify its present trading business and to develop its own trading platform, Medison Labs is also planning to finalize the deal with HDR Cadenza Management which is a subsidiary of HDR Global Trading (the firm which has owned BitMEX). However, the company officials have said that the deal has not been finalized yet.
Raymond Ting Pang-wan who is the chairman at Madison commented:
“Our wine business is stable and profitable, but then it is small. It is hard to make wine trading into a very big business. This is why we have to diversify into financial technology and the cryptocurrency business – to achieve a better return for our shareholders,” He added that. “Virtual currencies and blockchain are getting more popular. Investing in the virtual currency sector will expand our income source.”
Regarding the current market bear market situation, Raymond also added:
“Bitcoin is cheap, which has created a good opportunity for us to enter the market. We are eyeing the long term, so we are not worried about short-term volatility,”
The firm believes that this acquisition won’t be considered a big one, but that the return potential could be massive.