Shortly after the news of the closure of the BitgetX branch in Hong Kong, BGX Group, the company that created Bitget, is rumored to have finished negotiations to buy back $90 million in shares of OSL exchange and parent company BC Technology Group.
According to an announcement on November 14, BGX Group, the company behind Bitget, has agreed to buy back 90 million USD shares (710 million HKD) of BC Technology Group and the OSL exchange after a period of negotiations.
This can be considered a good deal since Bitget was forced to close its BitgetX branch in Hong Kong two days ago due to its inability to get an operating license over six months. Whereas, OSL is one of only two exchanges licensed by the Hong Kong government but struggles to attract trading volume, causing the exchange to consider selling itself in October 2023.
In light of this decision, Shawn Liu, the founder of Bitget, now holds 29.97% of BC Technology’s shares, making him the company’s largest shareholder.
The CEO of BGX, Patrick Pan, offered the following comments regarding the deal:
“Our belief in the enormous potential of the digital asset market is reflected in our strategic investment in BC Technology Group and OSL. We are confident that this association will contribute to the growth movement of the digital asset market in addition to strengthening BGX’s global presence.”
OSL is a platform for cryptocurrency trading and custody based in Hong Kong. Along with HashKey, these are the only two cryptocurrency exchanges licensed in August 2023. According to BC Technology’s financial statements, OSL is the primary revenue source for the business. Compared to the same period in the previous year, trading volume on OSL nearly halved to 112.6 billion HKD in the first six months of 2023.
