Winemaker Plans to Purchase Crypto Exchange

Karan Balwani

December 28, 2018 11:57 am

Cryptocurrency News

Winemaker Plans to Purchase Crypto Exchange
6264 Total Views

A major winemaker in Hong Kong is planning to buy a Japanese cryptocurrency exchange. The winemaker is already listed on the Hong Kong Stock Exchange and will be acquiring a majority stake in a Japanese cryptocurrency platform. This deal aims to “achieve a better return” for shareholders of the company.

Madison Holdings Group is a winemaking company currently evaluated at $534 million. The group plans to purchase a majority stake in BitOcean.

As per the press release, Madison will purchase 67.2 percent of BitOcean from independent third parties, costing about $15.12 million. The group will also be paying an additional $15 million in fee. BitOcean is registered with Japan’s Financial Services Agency (FSA).

Raymond Ting Pang-win, Chairman, Madison Holdings Group said that this deal is a part of Madison’s diversification plans.

“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.”

Even though the cryptocurrency market has been in turmoil, it does not seem to affect Madison’s chairman. He said.

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.”

Thing further said that Japan is the best destination for a crypto trading platform as the country “represents about 20 percent of Bitcoin trading worldwide.”

Kenneth Leung Kai-Cheong, a leading tax advisor in Hong Kong, warned investors to be careful. He said

“Madison has built up its reputation through trade in fine wines, it is a newcomer to the virtual currency business. Investors need to pay attention to the risks involved when a company operates in two separate business lines.”

No Comments