Bear Market Immaterial – Madison Venturing In To Crypto Industry

Bear Market Immaterial – Madison Venturing In To Crypto Industry

December 28, 2018 Off By Maheen Hernandez

The finishing week of the year 2018, showed double-digit gains followed by a drop in the rates of the digital assets. 

There is a decline of about 10% in the prices of significant coins over the past 24 hours. Both short-term and long-term indicators are favoring a bearish trend.

Bitcoin is thus transiting through the ups and lows to sustain its dominance.  While this is the scenario, the Madison Holdings Group are diversifying their investment portfolio in BitOcean, a cryptocurrency trading platform.

BitOcean manufactures automated teller machines.  The company was started in Japan and China in the year 2013.  The company has a firm belief that Bitcoin is the most significant innovation since the coming of the internet.  They are mainly focusing on rebuilding the Bitcoin market in China while following the law, thus sustaining the transparency and thereby contributing to the healthy development of the industry.

Madison Holdings Group are winemakers who are listed on the Hong Kong Stock Exchange GEM Board.  The Chairman of Madison is not concerned about the current bear market or the 80% loss of Bitcoin from its all-time high.

This deal is likely to provide with an improved return to the stakeholders of the company. Madison will be buying 67.2% in BitOcean.  They will be paying $15 million in fees and $15.2 million for making independent third party purchases for the 67.2% stakes.  BitOcean is registered with Japan’s Financial Services Agency (FSA). 

When discussing the subject matter, Raymond Ting Pang-wan, the chairman at Madison, stated that the deal is a part of the diversification strategy of the company.

While the wine business according to the Chairman is stable and profitable, it is comparatively small from the point of view of establishing a huge market base.  Therefore, it is tough to diversify the financial technology into a cryptocurrency business to get a decent return for shareholders.

Raymond Ting Pang-wan further added that Bitcoin is cheap.  He stated that it thus created a decent opportunity for them to enter the cryptocurrency ecosystem.  He acknowledged the short-term volatility and said that they are not concerned as they are focused on the long term. The current bear market does not appear of concern to them.

Ting further stated that about 20% of Bitcoin trading worldwide takes place in Japan; therefore, Japan is an appropriate destination for the cryptocurrency trading platform.

The chairman at Hong Kong Securities Association stated that the overall market capitalization of the company is more and that the current deal represents only a small investment of the company. Therefore, this deal is not a massive risk for the company.

The reputation of Madison has come from trading in finer wines.  They are new to the virtual currency business, and therefore, investors will have to consider what they are into when investing in companies with two different trades.

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