The licensing and recognition of BitOcean exchange as an officially registered exchange in Japan has led to established firms eying to acquire stakes in the latter firm. BitOcean has licensed from the Financial Service agency (FSA).
Through Madison Labs, a subsidiary of Madison Holdings Group is set to acquire 62.7 percent of stakes at BitOcean for 1.68 billion yen. The latter amount loosely translates to $15.12 and Madison will purchase the stakes from third-party stakeholders. Besides the initial amount, Madison will fork out an additional $15 million to take care of fees.
HDR Cadenza Management
On the other hand, BitMEX through HDR Cadenza Management is looking to acquire a 51 percent stake at Madison Labs. Although the deal isn’t through at the moment BitMEX through its parent firm will fork out 17.14 million US dollars to get a 51% stake in Madison Labs. Through the new partnership, BitMEX and wine retailer Madison have high hopes they will expand their networks further.
“The deal with BitOcean will help our firm diversify our business operations and expand into emerging markets.” Raymond Ting Pang-wan Madison chair. “Moreover working with BitMEX an established firm in the crypto sector will spearhead the development of BitOcean crypto trading platform.”
Ting further said;
“It is hard to expand in the wine sector. For us, our business is small but stable and profitable for our shareholders. But to increase our revenue significantly, we decided to diversify our business and enter the ever-growing cryptocurrency business and financial technology. In return, our shareholders will get more money in their pockets.”
Drop in Price Presents an Opportunity for Madison
According to Ting, the current prices of Bitcoin presented them with an opportune moment to enter the virtual currency sector.
“At the moment Bitcoin’s price is at $3,000 from its all-time high of $20,000 last year at a time like this for us the cheapness gives us an opportunity to enter the market.” Ting Madison chair. “We are venturing in the sector for the long haul, and the current prices don’t discourage us.”
Besides all the above as reported on SCMP local news outlet Madison choose to buy stakes at BitOcean because of the compressive legal framework in place over in Japan. Moreover, Japan has a vibrant Bitcoin trading market worldwide where it represents 20% of the global Bitcoin market. Additionally, the FSA has out in place a robust legal framework to take care of the sector.