SCB Bank Acquires 51% Of Thai Crypto Exchange Bitkub, Making It ‘Unicorn’
Thailand’s oldest lender, Siam Commercial Bank Plc (SCBX) on Tuesday 2 November annouced a 51% acquisition in local crypto exchange Bitkub for 17.85 billion baht ($537 million) just over three years after their launch.
“SCBX Group” announced its investment in “Bitkub Online” by acquiring 51% of the total shares. Total value of approximately 17.85 billion baht ($537 million) through SCB Securities Company Limited (SCBS).
The deal also makes Bitkub officially the second “unicorn” in Thailand.
However, entering into the share purchase transaction will be subject to compliance with the regulations of relevant regulatory agencies such as the Bank of Thailand. Securities and Exchange Commission Provided that the results of the due diligence of Bitkub in the material respects must be satisfactory. Also, the counter party must fully comply with the conditions specified in the share purchase agreement It is expected to be completed within the first quarter of 2022.
Bitkub is a digital asset exchange operator licensed by the Securities and Exchange Commission (“SEC”) and is a leader in cryptocurrency exchange. Thailand. In the past January-September 2021, Bitkub had a total digital asset turnover reported to the SEC of approximately 1.03 trillion baht ($31 billion), representing a market share of approximately 92%. That month, Bitkub had a total revenue of 3.28 billion baht and a net profit of 1.533 billion baht.
SCB’s investment in Bitkub was due to foreseeing significant growth opportunities in the digital asset business. It will also help SCBS, as a major shareholder in Bitkub, to contribute to the development of the digital asset ecosystem in Thailand.
Arthit Nanthawittaya, Chief Executive Officer of SCB X Public Company Limited said,
“In the past 1-2 years, the digital asset business, one of the financial businesses of the future world, has grown rapidly. And there is a chance to grow in the long term. The “SCB X Group” invests in “Bitkub Online Co., Ltd.), which provides a leading digital asset trading platform in Thailand that has credibility With continuous growth in the past, SCBX Group will be able to create new value that can grow in the long term with the new world. This is in line with the SCBX parent vehicle strategy to upgrade to a financial technology group. can meet the new needs of consumers and able to enter a new field of competition that is coming soon in the next 3-5 years.”
In addition to the investment, there is also a plan to develop various digital asset businesses through new business models with Bitkub, a business partner to create long-term added value. and lay the foundation for entering the financial world of the future
Jiruyut Srupsrisopa, Bitkub’s CEO and Co-Founder, commented:
“Bitkub have reached the point where we have become the structure of the economy’s future. Thailand Also known as the Digital Economy, and in order to bring Bitkub to a global level. We need a strong partner to help us reach faster and sustainably. That’s why we partner with SCBS.”
