Bitcoin Miner sells 51{ed3edc9b99750d77b233fcf0e32be51fe72571eafb263a095510005e67825b9c} stake for $60 million to an alcohol company
Bitcoin News

Bitcoin Miner sells 51{ed3edc9b99750d77b233fcf0e32be51fe72571eafb263a095510005e67825b9c} stake for $60 million to an alcohol company

According to recent reports, a multinational crypto-asset investment company headquartered in Hong Kong named Diginex Limited landed a deal with Madison Group Holdings, a distributor of alcoholic beverages.  The bitcoin mining company sold 51{ed3edc9b99750d77b233fcf0e32be51fe72571eafb263a095510005e67825b9c} of stake in its digital currency mining and high-performance computing (HPC) operation for $60 million to the alcohol company.

The MOU, memorandum of understanding, between the companies stated that Digiassets, a proprietary platform of Diginex, will be available for holders of virtual currencies to buy high-value wines and other assets.

Formerly known as Madison Wine, Madison Holdings Group operates as an investment holding company concentrated on retail and wholesale alcoholic beverages business. It enjoys being a listed company in the Hong Kong Stock Exchange since 2015. The company provides a large range of premium wines, wine-related goods and other high-quality spirits like rare whiskeys, Chinese baijiu, and cognacs in Hong Kong.

On the other hand, Diginex is a privately-owned company having offices in Hong Kong, Germany, Switzerland, and Japan. The company manages mining operations in Asia, Sweden, and Switzerland. Madison will be assisting Diginex to track the growth of their GPU mining operations in Western Europe, through its $60 million investment. The company will be partnering with power and security providers and hardware suppliers with an aim to develop a secure and efficient GPU-based digital currency mining data center.

CEO of Diginex, Miles Pelham, stated: “this cash injection allows us to expedite our steps towards becoming the global provider of Distributed Ledger Technologies. We will continue to build out our mining operations in Sweden and Switzerland, but also focus on helping corporates and governments across the world to implement transformative DLT applications.”

Even though the Chinese government is against digital currency usage and mining, recent reports suggest that Hong Kong is among one of the most supportive cities for cyber money. It has been acknowledged as the leading business-friendly destination for East Asian crypto companies aiming to raise funds via Initial Coin Offerings ICOs.

A fintech lawyer based in Hong Kong, Ban Yates, said: “It is very likely that the surge in the number of ICO inquiries we have received in the past few months is at least partly a consequence of the restrictions in mainland China.” He continued “the obvious next step for many Chinese ICO issuers to take is to cross the border. You can still speak Chinese, but you can operate in a more favorable regulatory environment.”

It should also be noted that many crypto-based Chinese companies have moved to Singapore to avoid any conflict with the government. Crypto businesses claim that it is logical and risk-free to move to a destination that does not stop them from operating.

Few people have also supported government decision like Zennon Kapron, director of the market intelligence firm Kapronasia based in Shanghai. He said, “There are significant financial risks involved in ICOs, and that is why the Chinese government, and others, have cracked down on ICO issuance.”

It would be interesting to see who breaks down earlier in this fight for crypto freedom- the Chinese government or the crypto supporters.

Article written by Wilma Woo

Wilma stumbled into Bitcoin while studying for her masters in international relations. She began researching, which quickly turned to hodling and a contract to spread the word from TokenHunch.