BC Technology Group, the digital asset and fintech-focused parent of digital asset platform OSL, has announced raising approximately HK$710 million from crypto group BGX.
The deal, which still requires the approval of BC Group’s shareholders, will give BGX a 30% stake in the company. OSL is licensed by Hong Kong’s Securities and Futures Commission.
The fresh funds will be used for several strategic initiatives, including mergers and acquisitions within the digital asset and blockchain platform sector, and the continuous development and enhancement of its digital asset platform technology.
BC Group said the fresh funds will also be used to bolster the capital requirements of the group’s regulated subsidiaries, and supporting general working capital needs.
“We are immensely proud of this strategic partnership with BGX. This investment by BGX not only bolsters our capital strength but also introduces a forward-thinking collaborator in the realm of regulated digital asset services, furthering our mission to innovate and expand in the digital asset market,” said Hugh Madden, the CEO of BC Technology Group.
Madden adds:
It’s a significant endorsement of our strategy to lead with regulation and compliance, enabling us to continue offering our institutional, professional, and retail investors the best-in-class digital asset services.
BGX CEO Patrick Pan said their investment in BC Group and OSL is a strategic move that reflects the company’s belief in the immense potential of the digital asset market.
“We are confident that this partnership will not only strengthen BGX’s global presence but also enhance the growth trajectory of the digital asset industry,” Pan added.
The announcement comes at a time when the digital asset and blockchain space is experiencing rapid growth and increasing interest from institutional and retail investors.
The deal is now awaiting the approval of BC Group’s shareholders, and upon completion, it is expected to usher in a new era of growth and innovation in the digital asset market, benefiting both BC Technology Group and its strategic partner, BGX, according to the announcement.