Digital currency exchange operator BC Technology Group has raised $90 million through issuing new stocks, in a move that is expected to help the company expand its trading platforms and digital currency services.
The Hong Kong based group, which runs cryptocurrency exchange OSL, issued 45 million shares at HK$15.50, raising a total of HK$697 million—roughly equivalent to $90 million. The January 13th issuance follows on from an announcement on January 6th that the group had signed an agreement with an agent to place the shares.
According to BC Group, the capital raised from the latest stock issue will be used to fund an investment in the expansion of its OSL platform, as well as expanding the range of digital asset services on offer.
The company also earmarked $30 million for “maintaining sufficient liquid capital to satisfy SFC [Securities and Futures Commission] license requirement of the licensed entity and the expansion of prime brokerage business.”
OSL secured a license from the Hong Kong financial regulator on December 15, granting permission to operate as a regulated broker and automated trading platform for digital currency assets in Hong Kong.
According to press reports, Fidelity International was part of the funding round, taking a further 3.37 million shares in BC Group in exchange. BC Group has yet to release a breakdown of the names of other parties to the investment.
The funding comes as the latest support from the market for BC Group and OSL, at a time of increasing demand for digital currency exchange worldwide, at both an institutional and individual level.
With the necessary licensing in place in Hong Kong, the expectation is the funding will help BC Group expand its service offering, and reach more clients with its digital asset services.