French wine trading company partners up with Bit MEX to buy stakes in BitOcean crypto exchange

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The South China Morning Post is reporting that French wine retailer Madison Holdings Group is set to acquire stakes in BitOcean, a popular crypto exchange in Japan. The wine company has teamed up with crypto trading platform BitMEX seeking to acquire majority stakes in BitOcean.

According to the report, Madison Holdings is eyeing 67.2% share of the BitOcean properties. This will amount to 1.68B yen or approximately USD$15 million of stakes owned by independent third parties.

Madison Holdings Group’s chairman, Raymond Ting Pang-wan told the South China Morning Post that the planned deal is part of the wine retailer’s strategy to diversify its products and services.  By partnering with BitMEX, Madison is hoping to kick off its foray into the virtual currency industry.

Ting said:

Our wine business is stable and profitable, but then it is small. It is hard to make wine trading into a very big business. This is why we have to diversify into financial technology and the cryptocurrency business – to achieve a better return for our shareholders.

He also said that digital currencies and blockchain are becoming more popular lately and his company is hoping to expand its income source by investing in the virtual currency since it is getting more popular lately.

For its part, BitMEX is seriously considering to acquire US$17.14 million or 51% stake through a joint venture with Madison Labs, Both the deal for BitOcean and the partnership with Madison Holdings Group are yet to be finalised.