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ZEC $1,375 What changes for Bitbank customers after SBI completes takeover
SBI Holdings closed its purchase of Bitbank on Oct. 1, bringing SBI VC Trade's president onto the board while leaving customer services unchanged.
Key takeaways
- The price tag held. SBI valued the deal at roughly ¥46.7 billion, or approximately $290 million, the same figure given in June.
- Custody scale grows. Adding the April 30 figures of SBI VC Trade and Bitbank gives the group about $6.97 billion in assets and 2.92 million accounts.
- XRP flows continue. At press time, 5.82 million XRP had traded on Bitbank's XRP/JPY market over 24 hours.
What happened
SBI Holdings closed its takeover of Bitbank on Oct. 1, leaving the Japanese exchange a wholly owned subsidiary after the final share transactions. Bitbank also finished repurchasing shares held by MIXI and Ceres, closing the last required steps.
The deal ran in stages. SBI's wholly owned unit SBICAH GK was set to acquire 53,704 Bitbank shares from CEO Noriyuki Hirosue and other individual shareholders. Bitbank then issued 48,952 new shares to the SBI unit through a third party allotment. SBI valued the package at roughly ¥46.7 billion, or about $290 million.
Management changed too. Tomohiko Kondo, president of SBI VC Trade, joined Bitbank's board. Hirosue stayed on as representative director, president and CEO and is set to become an outside director at SBI VC Trade. Three Bitbank outside directors stepped down.
Bitbank told customers services will not change. The exchange said its existing services continue without changes and that customers can keep using it under the same arrangements.
Why it matters
The group gains scale. Adding the April 30 figures of SBI VC Trade and Bitbank gives it about $6.97 billion (¥1.1 trillion) in assets under custody and roughly 2.92 million crypto accounts, which would put it first among Japanese exchange operators by custodied assets.
Bitbank is one of Japan's busiest XRP venues. At press time, 5.82 million XRP had changed hands on its XRP/JPY market over the past 24 hours. SBI has worked with Ripple for about a decade, and RLUSD went live in Japan through SBI VC Trade on June 24. Its global supply has passed $2.4 billion.
Stablecoins sit at the centre of the plan. SBI said the merged business would build new financial services using stablecoins, and the yen stablecoin JPYSC is in development through SBI Shinsei Trust Bank. SBI folded Bitpoint Japan into SBI VC Trade in April.
What the data shows
The price was roughly ¥46.7 billion, or approximately $290 million, the same figure given in June.
The transaction covered 53,704 shares bought from individual holders and 48,952 new shares issued to SBI's unit.
Background
- SBI disclosed in May that it was considering buying Bitbank shares and making the exchange a consolidated subsidiary, subject to due diligence and internal approvals.
- SBI's board approved the definitive acquisition agreement in June, after the two companies first disclosed talks over a capital and business alliance in May.
- MIXI became one of Bitbank's major shareholders after a capital and business alliance in 2021, and the package needed clearance from the Japan Fair Trade Commission before it could close.
What is still unclear
- The reports do not give a launch date for JPYSC, which they describe as in development.
- The reports do not say how the two exchanges' businesses will be combined beyond the board seat each now holds in the other.
Questions readers ask
What does the SBI takeover change for Bitbank users?
Nothing, according to the exchange. Bitbank says its existing services continue without changes and customers can keep using the exchange under the same service arrangements.
How much did SBI pay for Bitbank?
Roughly ¥46.7 billion, or approximately $290 million. That is the same figure given when the deal was announced in June.
Who is on Bitbank's board after the deal?
Tomohiko Kondo, president of SBI VC Trade, joined Bitbank's board, while Noriyuki Hirosue stayed as representative director, president and CEO. Three outside directors left.
Is Bitbank still an XRP exchange?
It remains one of Japan's busiest XRP venues. At press time, 5.82 million XRP had changed hands on its XRP/JPY market over 24 hours.
