BGX Invests $90 Million in BC Technology Group, Operator of Hong Kong’s OSL Exchange
BC Technology Group, the operator of Hong Kong’s publicly listed cryptocurrency exchange OSL, has secured a significant investment from BitgetX (BGX), the Hong Kong division of the cryptocurrency services provider Bitget, although it is still pending shareholder approval.
On November 14, BC Technology entered into a partnership with BGX, which has agreed to invest around 710 million Hong Kong dollars (approximately $90.1 million) by subscribing for shares in BC Technology.
This collaboration is set to bolster OSL, operated by BC Technology, and underscores their commitment to establishing new benchmarks in digital asset security, compliance, and technological innovation. OSL, a pioneer in the cryptocurrency space, secured a Hong Kong crypto license in 2023, positioning itself among the first exchanges to achieve this milestone.
The transaction is now pending shareholder approval from BC Technology Group’s shareholders. If successful, it is anticipated to drive BC Technology Group and OSL into a new phase of development and leadership within the digital asset ecosystem.
BGX’s Investment in BC Technology’s OSL Exchange Boosts Vision for Regulated Digital Asset Market Leadership
The injection of funds from BitgetX is viewed as a robust endorsement of OSL’s vision to lead the regulated evolution of the digital asset market. The partnership is hailed for its global digital asset footprint, representing a powerful synergy with OSL’s commitment to offering secure and regulated access to digital assets, complemented by BGX’s global presence in the sector.
This collaboration is poised to elevate OSL’s platform offerings, contributing to the overall growth of the digital asset industry. The strategic alignment of BC Technology and BGX is expected to foster innovation and further enhance security standards.
Hugh Madden, CEO of BC Technology Group, expressed pride in the strategic partnership, stating:
“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.”
Patrick Pan, CEO of BGX, emphasized the strategic nature of this investment. He reflected confidence in the digital asset market’s potential and the partnership’s ability to strengthen BGX’s global presence.
He said:
“Our investment in BC Technology Group and OSL is a strategic move that reflects our 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.”
BC Technology’s OSL Platform Halts Trading as Reports Emerge of Potential Sale or Investment from Bitget
BC Technology made waves in the financial markets as it temporarily halted the trading of OSL shares on the Stock Exchange of Hong Kong on Monday. The company attributed this move to a planned disclosure regarding a significant deal deemed sensitive business information.
Industry sources have speculated, though unconfirmed, that OSL may have either been acquired by or received investment from Bitget. Coincidentally, Bitget announced its official departure from the Hong Kong market on November 13, citing the decision not to apply for a Virtual Asset Trading Platform (VATP) license as the reason for ceasing operations by December 13, 2023.
BitgetX, the Hong Kong division of Bitget, urged users to withdraw their crypto assets before the specified date, emphasizing that asset trading on the platform will cease and the website will become inaccessible after December 13.
Amid these developments, BC Technology Group Ltd. is reportedly exploring the potential sale of OSL, its cryptocurrency platform valued at around $1 billion Hong Kong dollars (approximately $128 million). OSL, as one of the two exchanges licensed under Hong Kong’s new digital asset laws implemented in June, provides prime brokerage, exchange, and custody services. The platform also offers the essential infrastructure for virtual asset trading by financial institutions.
