Hong Kong wine firm, Madison Holdings Group, is listed on the GEM board of the Hong Kong stock exchange. The company is best known for trading in fine French wine. It plans to buy a stake in BitOcean, a Japanese cryptocurrency trading platform.
Details Of The Plan
Some documents sent to the secondary board of the Hong Kong bourse this month. In it, the company mentioned that Madison Lab, a subsidiary, is going to acquire 67.2 percent of BitOcean. The acquisition will be from independent third parties for 1.68 billion yen (US$15.12 million). Also, another US$15 million from various fees may be an addition.
The platform allows registration of 16 operators. Registration is successful with the Japan’s Financial Services Agency. But, the platform has not started trading yet.
HDR Cadenza Management, a subsidiary of Seychelles. It headquarters HDR Global Trading that controls cryptocurrency trading platform BitMEX. The company is considering a US$17.14 million, 51 percent stake in a joint venture with Madison Labs. Although, the deal has not been finalised. But, HDR said in a statement from last week, that the deal for BitOcean has also not been finalised.
The deal is a part of diversification plan and to develop its virtual currency. Chairman of Madison, Raymond Ting Pang-wan, discussed some aspects of the deal. To him, the deal for BitOcean was part of the company’s diversification strategy. The partnership with BitMEX would also help in developing its virtual currency trading platform.
In an interview, the chairman mentioned the good quality of their wine business. The business is stable and profitable, but it is small. It is also quite difficult to make wine trading into a very big business. Thus, there is need to diversify into financial technology and cryptocurrency business. This will help in achieving a better return for our shareholders.
Not The First Attempt
The deal with BitOcean will not be Madison’s first foray into diversification. Last year, it got a majority stake in securities and asset management business Eternal Pearl Securities. The wine making company also acquired shares in CVP Capital and CVP Asset Management. These acquisitions will aid Madison move into the brokerage and asset management business. This will be in the region covered by Beijing’s Greater Bay Area initiative.