Hong Kong, August 20 — New Huo Technology Holdings Limited ("New Huo Tech," stock code: 1611.HK) announced its intention to acquire a majority stake in Japanese cryptocurrency exchange BitTrade for over $33.23 million, aiming to expand its global footprint in the crypto market.
Key Details of the Acquisition
- Stake Acquisition: Post-transaction, New Huo Tech will indirectly hold 92.31% of BitTrade’s shares.
Payment Structure:
- $30.46 million (HKD 237.6 million) to acquire 100% of Avenir Asset Holding, which indirectly owns 84.62% of BitTrade. Payment will be via issuance of up to 110 million new shares.
- $2.77 million (HKD 21.6 million) to purchase an additional 7.69% stake from Goldenway, settled through 9.9 million new shares.
- Share Premium: Issuance price set at HKD 2.18 per share, a 14.14% premium over the closing price on August 16 (HKD 1.91).
- Capital Expansion: The company proposes increasing its authorized share capital from HKD 500,000 (500 million shares) to HKD 700,000 (700 million shares) to facilitate future investments.
Strategic Rationale
BitTrade, founded in 2016 and licensed by Japan’s Financial Services Agency (FSA), holds two critical regulatory approvals:
- Cryptocurrency Exchange License (Kanto Finance Bureau No. 00007)
- Type 1 Financial Instruments Business License (Kanto Finance Bureau No. 3295)
As one of Japan’s 29 registered crypto exchanges, BitTrade ranks second in processed crypto assets nationwide. It’s also a member of Japan’s top three crypto self-regulatory associations, which shape industry standards and advance security token adoption.
Post-acquisition, New Huo Tech plans to:
- Leverage BitTrade’s compliant infrastructure to expand services in Japan and globally.
- Enhance BitTrade’s market position using New Huo Tech’s MPC self-custody platform (SINOHOPE) and blockchain solutions.
- Integrate BitTrade’s operations into its financial statements, strengthening its asset management services.
👉 Explore New Huo Tech’s crypto solutions
About New Huo Technology
New Huo Tech (1611.HK) specializes in digital asset custody and hybrid centralized/decentralized services. Its core offerings include:
- SINOHOPE MPC Self-Custody Platform
- Full-stack public chain ecosystem solutions
- Institutional OTC trading services
Risk Disclosure
The acquisition is subject to fulfillment of pre-conditions outlined in the agreements. Shareholders and potential investors should exercise caution and consult financial advisors.
FAQs
Q: Why is New Huo Tech acquiring BitTrade?
A: To strengthen its global crypto market presence and access Japan’s regulated exchange ecosystem.
Q: What licenses does BitTrade hold?
A: FSA’s cryptocurrency exchange and Type 1 financial instruments licenses, ensuring compliance.
Q: How will the acquisition be funded?
A: Through issuing new shares, totaling up to 20.33% of New Huo Tech’s enlarged share capital.
Q: What’s BitTrade’s market position in Japan?
A: It’s among Japan’s top crypto platforms by transaction volume, ranking second in processed assets.