HKD 710 million invested in Hong Kong Compliance Exchange, will Bitget ultimately profit or lose?

In the latest developments in the cryptocurrency space, the actions of Bitget Group (BGX) have garnered widespread attention in the industry. A substantial investment totaling HKD 710 million has hit the excitement point in the market. Below, we will summarize the recent dynamics of this much-anticipated rising star.

HKD 710 Million Investment in the Parent Company of Hong Kong Compliant Exchange: Is BGX's Financial Power and Long-term Vision Online?

On the evening of November 14, Hong Kong licensed virtual asset exchange OSL announced that cryptocurrency group BGX has made a strategic investment in OSL's parent company—BC Technology Group (HKG: 0863), a publicly listed company in Hong Kong, by subscribing for new shares worth HKD 710 million. This investment not only showcases BGX's financial strength but also marks an expansion of its influence in the cryptocurrency market.

Just a day earlier, BC Technology Group announced a suspension of stock trading and hinted at a significant announcement to come. Shortly thereafter, the group announced this morning the sale of 90% of its indirectly wholly-owned subsidiary, Shanghai Jingwei Enterprise Development Co., Ltd., for approximately RMB 23 million (equivalent to HKD 24.6 million). This series of financial maneuvers indicates a strategic restructuring underway at BC Technology Group.

However, what is even more intriguing is BGX's true identity. According to the announcement, BGX is described as "an innovative leader in the cryptocurrency space," dedicated to providing a platform for institutional and individual investors to seek cryptocurrency investment opportunities. Further investigation reveals that BGX is actually a compliant entity controlled by the management team of Bitget.

Notably, BGX is also an abbreviation for BitgetX, a newly registered company by Bitget to obtain a compliant license in Hong Kong. From their domain registration status, there is a direct connection between BitgetX and Bitget. This is also reflected in the market performance of BGB (Bitget's token). In the past 24 hours, the price of BGB surged from 0.49 USDT to a peak of 0.58 USDT, although it slightly retreated to 0.56 USDT, marking a 24-hour increase of 15.2%.

Recent price trend of BGB

These strategic moves clearly demonstrate Bitget's ambition for expansion and its strategic layout in the cryptocurrency market. In the following sections, we will further explore Bitget's strategic initiatives and their potential profound impact on the entire cryptocurrency industry.

Bitget's Costly and Active Entry into the Hong Kong Compliant Financial Sector Reveals International Ambitions

With Bitget's rapid development in the global cryptocurrency trading field, its recent strategic investment in BC Technology Group has attracted widespread attention in the industry. Since its establishment in 2018, this trading platform known for its innovation and user-friendliness has showcased its ambition for global expansion through its investment in the Hong Kong-listed BC Technology Group via its group company BGX, reflecting a clear strategy to penetrate the Hong Kong market.

This investment makes BGX the major shareholder of BC Technology Group, holding a stake of up to 42.79%. This move not only reshapes the equity structure of BC Technology Group but also adds a new element to Bitget's strategic layout in the global market. According to market rumors, the funds will primarily be used for mergers and acquisitions in digital assets and blockchain platforms, technology development, meeting capital requirements, and daily operational funds.

Bitget's decision to invest in BC Technology Group is closely related to Hong Kong's increasingly friendly policies towards the cryptocurrency industry. As an emerging hotspot for crypto enterprises, Hong Kong has attracted many companies, including Bitget. However, entering this market is not without challenges, especially in the application process for compliant licenses. The new regulations from the Hong Kong Securities and Futures Commission require exchanges to hold dual licenses, making the licensing process more complex and time-consuming.

Bitget's asset reserve ratio

Moreover, it is rumored that the cost of applying for a license is extremely high, with no upper limit on subsequent investments. Reports indicate that the preparatory work before applying for a license requires at least HKD 100 million in investment. In this context, Bitget has chosen to invest in BC Technology Group, which already holds a license, paving a more efficient path to enter the Hong Kong market.

Through this strategic investment, Bitget not only demonstrates its focus on the Hong Kong market but also indicates its ambitions and strategic vision in the global cryptocurrency trading field. This move not only paves the way for Bitget's development in the Hong Kong market but also provides a solid foundation for its global expansion.

OSL, with Clear Compliance Advantages, Becomes Bitget's Preferred Investment Choice

So why did Bitget choose OSL?

This decision reflects a profound understanding of market trends and a precise grasp of future opportunities. As a major global financial hub, Hong Kong holds significant strategic value for cryptocurrency trading platforms. OSL has already received approval from the Hong Kong Securities and Futures Commission to provide digital asset trading services for mainstream coins like Bitcoin and Ethereum to retail investors. For Bitget, this means a fast track to enter the Hong Kong market without going through cumbersome application procedures.

In the highly competitive Hong Kong market, only a few companies have obtained licenses to provide digital asset services, and OSL is one of them. By investing in OSL, Bitget can quickly gain a market advantage, surpassing competitors and seizing the initiative. At the same time, the compliance requirements for cryptocurrency exchanges in the Hong Kong market are extremely strict, covering various aspects such as funding, registration, custody, and personnel. By investing in the already licensed OSL, Bitget effectively avoids these high barriers, reducing the difficulty and risk of market entry.

Although OSL's performance in recent years has not met expectations, as part of BC Technology Group, it still possesses a solid market foundation and technical strength. Bitget's investment may not only inject new vitality into OSL but also provide a strong springboard for Bitget's expansion in the Hong Kong market. Furthermore, this investment initiative not only strengthens Bitget's business layout in Hong Kong but also opens the door for broader business exploration and cooperation using OSL's resources and network, thereby promoting the realization of its business diversification and globalization strategy.

Bitget Wallet's download volume in October ranks fourth globally among crypto wallets

In summary, Bitget's choice of OSL as its strategic investment target is based on considerations of strategic layout in the Hong Kong market, the need for compliant licenses, the pursuit of competitive market advantages, strategies to lower market entry barriers, and long-term planning for strategic diversification. This decision not only showcases Bitget's market insight but also lays a solid foundation for its future development in the global cryptocurrency trading field.

Will the Huge Investment Bring Concrete Returns? Bitget Will Gain in the Following Areas

Bitget's latest investment action has built a mutually beneficial relationship between BC Technology Group and Bitget Group. This move is particularly strategically significant for Bitget, bringing clear benefits.

First, Hong Kong's regulatory requirements mandate that banks and brokers must collaborate with licensed institutions when providing digital asset services. Currently, OSL and Hashkey are the main choices in the market. In August of this year, OSL received approval from the Hong Kong Securities and Futures Commission to upgrade its existing license, enabling it to provide retail investors with trading services for mainstream digital assets like Bitcoin and Ethereum. By leveraging OSL's license, Bitget can quickly establish a presence in the Hong Kong market and seize the initiative.

However, this strategic step is not without challenges. According to the regulations of the Hong Kong Securities and Futures Commission, licensed companies need to undergo scrutiny after changing major shareholders and may need to submit a new business plan, which could lead to delays in the process. Additionally, while investing in OSL has won Bitget valuable time, if it fails to apply for a VASP license, its trading scope will be limited to offering only security token trading.

Bitget's strategic layout goes beyond compliance pursuits. Recently, Bitget's venture capital fund, Foresight Ventures, announced the acquisition of a majority stake in the crypto media outlet The Block, raising The Block's valuation to USD 70 million. The Block will maintain its independent operations and existing business lines.

After experiencing a series of events such as Luna, FTX, and Three Arrows Capital, the global crypto market has undergone a profound restructuring and reshaping. With the launch of ETFs and the acceleration of compliance efforts in places like Hong Kong, cryptocurrency prices are rebounding rapidly, and a new market order is forming. In this new era, a new crypto empire is rising, with Bitget as a key driver.

Global Layout Continues to Expand, Bitget May Find the Best Balance Between Compliance and Innovation

As Bitget's strategic layout in the global crypto market gradually unfolds, the company stands at a new historical starting point. Through its investment in OSL and the acquisition of The Block, Bitget has not only strengthened its position in the cryptocurrency trading field but also expanded its business scope, further solidifying its status as an industry leader. These initiatives not only demonstrate Bitget's market insight and strategic foresight but also provide it with a valuable head start in the fiercely competitive crypto market.

Looking ahead, Bitget will continue to seek a balance between compliance and innovation, constantly exploring new market opportunities. As the global crypto market continues to evolve and mature, Bitget is expected to become one of the key forces driving the development of this industry. In this era full of changes and opportunities, Bitget's future is filled with infinite possibilities.