According to a recent report, 67.2 percent of a regulated Japanese cryptocurrency exchange- BitOcean, is about to go on sales. It was reported that Madison Holdings Group Ltd— a wines and alcoholic beverages company, has initiated plans to buy some part of the crypto exchange for a total of $30.12 million.
Madison Labs Buys BitOcean
Madison Labs, a subsidiary of the group will be in charge of closing the deal. Madison Holdings which is known for the production and sales of high-end French wines is valued at $546 million and listed on the Hong Kong stock exchange’s Growth Enterprise Market (GEM). The group is also well known for its investment in corporate finance activities such as asset management and advisory services.
The group’s interest in BitOcean which is one of the few regulated crypto exchanges in the country has raised some questions. The reason behind this questioning is simply because trading activities have not started on the exchange.
Speaking on why it is diversifying into the crypto industry, Raymond Ting Pang-wan, chairman of Madison, stated that:
“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. Virtual currencies and blockchain are getting more popular. Investing in the virtual currency sector will expand our income source.”
Pang-wan also stressed that despite the current market downtrend, the company is still quite confident that the market will rebound and that the group has made a sound investment. He back this up with a statement which reads:
“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,”