Hong Kong-listed French wine trading company Madison is reported to be looking at entering the cryptocurrency niche. Sources say that Madison Holdings group is planning to purchase 67.2 per cent of BitOcean through its subsidiary Madison Lab.
BitOcean is a Japanese cryptocurrency trading platform, which, while already registered with the Japan’s Financial Services Agency, hasn’t started trading yet.
The acquisition is said to cost $15.12 million plus another $15 in other fees.
At the same time, there are reports that HDR Global Trading, owner of BitMEX, is planning on a joint venture with Madison Labs through its subsidiary HDR Cadenza Management. The latter will be holding a 51% stake in the joint venture, amounting to $17.14 million.
While neither of the deals have been finalized, according to Madison chairman Raymond Ting Pang-wan, these plans are in line with the company’s efforts to diversify. This includes developing its own cryptocurrency trading platform, in which BitMEX will play a large role.
While it may seem questionable to enter at a time when the market has been experience massive setbacks, Ting thinks otherwise. He says, “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.“