Crypto firm BGX invests $90M in Hong Kong

• BGX, the company that runs BitgetX in Hong Kong, has agreed a $90 million investment in BC Technology.
• BC Technology is the parent company of OSL, a publicly listed crypto exchange trading on the Hong Kong Stock Exchange.
• BitgetX announced it would not pursue regulatory registration and licensing in Hong Kong.

BC Technology Group, the company behind the crypto exchange OSL, has agreed to a strategic investment from BGX, the crypto operator of the BitgetX platform.

The news development was shared via a press release BC Technology published on Tuesday, November 14. 

BGX invests $90 in OSL

Details indicate that the BGX investment involves a subscription for shares in the OSL parent company to the tune of HK$710 million (approximately $90 million.)

“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,” said Patrick Pan, CEO of BGX. “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,” he added.

While the strategic subscription for shares has been agreed, these will be undertaken under a specific mandate. That will be after an approval from the BC Technology shareholders. 

🚀 Big news at #OSL! Our parent, @bctechgroup, has just announced a strategic investment of HK$710 million from BGX.

📈 Here’s the scoop:
– Fueling M&A in digital asset and blockchain sectors.
– Enhancing our digital asset platform technology.
– Supporting capital needs of our… https://t.co/dk9oSkXvcS

— OSL (@osldotcom) November 14, 2023

BitgetX to halt operations

OSL, a wholly-owned subsidiary of BC Technology, was the first digital assets exchange to receive regulatory approval from Hong Kong’s Securities and Futures Commission (SFC).

Today’s announcement comes a day after BitgetX, the Hong Kong crypto platform of BGX, notified its customers of plans to halt operations by December 13. The exchange will not pursue a licence from SFC.

BC Technology also asked the Stock Exchange of Hong Kong to halt trading of OSL shares in view of a business deal. The Bitget announcement also put its decision to the same consideration.

The price of Bitget Token (BGB) rose sharply after the news to trade at an all-time high of $0.58.