CEO and a founder of Bitkub Capital Group Holdings. “Bitkub is no longer just a startup and is now becoming a necessary part of the infrastructure critical for Thailand’s financial industry.”
Siam Commercial Bank said that Bitkub had about 92 percent of the total trading turnover among all licensed crypto exchange operators in Thailand with turnover of about $30 billion.
The company founded in 2018 had a profit of about $45 million in the first nine months of 2021 from revenue of $98.4 million.
Bloomberg News reported that demand for assets such as crypto currencies and equities “has boomed in Southeast Asia’s second-largest economy as young investors seek better returns from their savings amid low interest rates and an economic slowdown,” caused by the pandemic.
Thailand has a vibrant startup scene but only recently have any of its new firms reached unicorn status.
Office of the Securities and Exchange Commission Provided that the results of the due diligence of Bitkub in the material respects must be satisfactory. and the counterparty has fully complied with the conditions specified in the share purchase agreement The share purchase transaction is expected to be completed by 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, representing a market share of approximately 92%. That month, Bitkub had a total revenue of 3,279 million baht and a net profit of 1,533 million baht.
Bitkub has been acquired by a subsidiary of the oldest bank in Thailand, SCB X.
Referring to the PR on the SET website, they revealed that
The Siam Commercial Bank Public Company Limited (“Bank”) would like to inform you that The Board of Directors of SCB Securities Company Limited (“SCBS”) No. 13/2021, held on November 2, 2021, resolved to approve SCBS, a subsidiary of the Bank, to enter into a share purchase agreement in Bitkub Company Limited. Online Company Limited (“Bitkub”) from Bitkub Capital Group Holdings Company Limited (“Seller”) in the proportion of 51% of the total shares of Bitkub, totaling approximately 17,850 million baht, collectively referred to as “Share transaction”
In this regard, entering into the share purchase transaction will be subject to compliance with the regulations of relevant regulatory agencies such as the Bank of Thailand.
Statista in early 2021 showed that 72% of respondents who traded cryptocurrencies in Thailand used Bitkub, beating the likes of Binance and Satang Pro.
“New financial world”
Thailand’s oldest bank which has been in business for over 100 years said the Bitkub acquisition “will help the SCB Group create new growth value in the long term amid a new financial world.”
“The move is in line with SCB Group’s strategy to upgrade to a financial technology group, meeting new consumer needs and entering a new competitive arena that will emerge very quickly in the next three to five years,” added Siam Commercial Bank chief executive Arthid Nanthawithaya.
Siam Commercial Bank said the deal is expected to be completed by the first quarter of 2022.
BANGKOK (BLOOMBERG) – Bitkub Online became Thailand’s latest start-up to notch up a valuation of more than US$1 billion (S$1.35 billion) after it sold a majority stake to the nation’s biggest bank by market value.
Bitkub’s coin tripled in value after the deal was announced.
Siam Commercial Bank (SCB), in which Thailand’s King is the largest shareholder, said late on Tuesday (Nov 2) that it will acquire 51 per cent of Bitkub for 17.85 billion baht (S$723 million), valuing the country’s biggest crypto exchange operator at about 35 billion baht.
Bitkub’s coin surged by as much as 200 per cent to a record US$2.85 late on Tuesday from a low of 98 US cents earlier in the day, according to pricing from CoinGecko.
Thailand now plans to become the majority shareholder of one of the biggest crypto exchanges in the nation after a $536.7-million acquisition.
Based on a November 2 announcement, Siam Commercial Bank’s SCB X Group is projected to buy a 51% stake in Thailand-based cryptocurrency exchange Bitkub. The purchase is valued at 17.85 billion baht (roughly $536.7 million) and it will happen by the second quarter of 2022.
Bitkub said that the deal is subject to approval from the Thai Securities and Exchange Commission (SEC) and the nation’s central bank. The CEO of Siam Commercial Bank, Arthit Nanthawittaya, insisted that this purchase was based mainly on the growth of businesses in the digital asset space in the past two years and the anticipated value in the long term.
The firm indicated that it wants to strengthen and expand the digital asset ecosystem in Thailand.
“We needed to elevate Bitkub to the global level, so we turned to a strong partner like SCB to help us achieve our target faster and more sustainably,” said Bitkub founder and CEO, Jirayut Srupsrisopa.
SCBX, the country’s fourth-largest lender by assets, plans to restructure here and grow its new business and financial technologies.
The move comes as other Thai banks and companies make inroads into digital assets.
In August, Bank of Ayudhya Pcl was part of a $41 million investment here round in Thai-based exchange, Zipmex, which counts Facebook, co-founder Eduardo Saverin’s venture capital firm, B Capital Group as an investor.
Kasikornbank Pcl earlier this year rolled out a service for digital token offerings.
Other companies like financial consultant, the Brooker Group Pcl have made cryptocurrencies like Bitcoin a part of their investment strategy.
“SCB is a financial institution that has supported the Thai people for over 114 years.
To support new business growth, SCB has undertaken a major strategic move to reorganize its structure and transform into the SCBX Group. The most important thing is that Bitkub and SCBX share a common goal and vision with regard to the importance of digital assets for the country and the Thai people in the long term.
However, entering into such share purchase transaction is considered an asset acquisition transaction of the Bank in accordance with the Notification of the Capital Market Supervisory Board No. TorJor. Acquiring or disposing of assets and the announcement of the Board of Governors of the Stock Exchange of Thailand Re: Disclosure of Information and Acts of Listed Companies in the Acquisition or Disposition of Assets 2547 (including any amendments) (“Notification on Acquisition or Disposition of Assets”). When calculating the maximum transaction size, it is equal to 0.55%, which is less than 15% of the transaction size.
It will also help the bank meet new consumer needs and enter a “new competitive arena that will emerge very quickly in the next three to five years”.
Thailand saw turnover at locally licensed crypto exchanges peak at 217 billion baht in May, from 18 billion baht in November 2020, according to data from the Securities and Exchange Commission of Thailand. Turnover has since fallen and averaged about 100 billion baht a month in the August-to-October period.
Bitkub, which was founded in 2018, had a profit of about 1.53 billion baht in the first nine months of 2021 from a revenue of 3.28 billion baht, SCB said.