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Renowned Hong Kong Wine Company Buying a Japanese Cryptocurrency Exchange

The main Hong Kong winemaker who is already listed on the GEM board of the Hong Kong Stock Exchange, Madison Holdings Group is planning to get a majority stake in one of the renowned Japanese cryptocurrency exchange platforms. According to verified sources, the deal will offer more returns to the wine company’s shareholders.

Madison Holdings Group to Buy Cryptocurrency Exchange Platform

Madison Holdings Group that is estimated to be worth $534 million is a leading winemaking company that takes pride in being one of the companies listed on the GEM board. It is reported that the company has made a strategic decision to purchase a majority stake in one of the exchange platforms in Japan, BitOcean.

The winemaking company will acquire 67.2% of BitOcean from other independent third parties for $15.12 million. Madison will also pay $15 million to cater for different fees. Before we proceed, it is important to note that BitOcean is one of the cryptocurrency trading platforms that are fully registered and accredited by Japan’s Financial Services Agency (FSA).

Madison Holdings Group Chairman, Raymond Ting Pang-wan told the press that this is one of the diversification strategies of the company. Raymond stated that even though its wine business is profitable and stable, it is small. He also went ahead to state that transforming a wine company into a big corporation is difficult and that is they decided to venture into cryptocurrency and financial technology business. The management is optimistic that the deal will give shareholders better returns on their investment in the wine company.

Not Afraid of the Dropping Price

The prolonged bear market experienced for the better part of this year 2018 resulted in Bitcoin price dropping by more than 80% from its all-time high in January. The current market trend is not a major concern to Madison Holdings Group. He told the press that the fact that Bitcoin is cheap has made it possible for the company to enter the market without spending a fortune.

Raymond also said that the company has a long-term plan and is not worried about the short-term volatility of cryptocurrency prices. He also noted that Japan is currently the ideal country to set up a cryptocurrency trading platform. He supported this comment with the fact that 20% of bitcoin trading activity worldwide is done in Japan.

Reports indicate that Japanese Yen could soon surpass US dollar in Bitcoin/fiat currency trading. Based on the fact that Madison Holdings Group current market capitalization is estimated to be half a billion dollars, the investment in the cryptocurrency exchange platform is relatively small but will have significant positive ramifications on its growth and profitability.

What do you think about Madison Holdings Group investment in BitOcean? Share with us through the comment section and be sure to check out other cryptocurrency news that is trending worldwide here.

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