Diginex Global Limited, a Hong Kong-based distributed ledger technology company, has sold a 51 percent stake in its cryptocurrency mining operations for $60 million, the company announced.
The stake was sold to Hong Kong-listed Madison Holdings Group, the retailer and wholesaler of alcoholic beverages whose investment portfolio includes blockchain companies. The purchase was made through Madison Future Games Limited.
Mining is a term used to describe the creation of cryptocurrencies through the validation of transactions on certain blockchains. “Miners” provide the computing power to do this validation through complex problem solving and are awarded coins.
Madison Holdings will pay about $10 million in cash and subscribe to over 213 million shares of Diginex at the issue price of HK$1.84 apiece. The price is a discount of approximately 0.97 percent to the average closing price of HK$1.858 per share ($0.236).
“This cash injection allows us to expedite our steps towards becoming the global provider of Distributed Ledger Technologies,” said Diginex CEO Miles Pelham.
After the completion of the deal, Diginex will see the stake of one of its largest shareholders, Royal Spectrum Holdings, reduce to 45.94 per cent from 48.35 percent. The previous stake of public shareholders will also be reduced to 49.08 per cent from 51.65 per cent.
“Madison allows Diginex to fast track the expansion of their GPU mining operations in Western Europe in partnership with leading hardware suppliers, power and security providers,” the company said in a statement.
Founded in December 2015, has currently deployed 2,200 GPU rigs across data centres in Asia and Europe.
“We will continue to build out our mining operations in Sweden and Switzerland,” said Pelham.
Outside mining of cryptocurrencies, Diginex also offers other services like payments and exchange services, providing B2B and P2P payments by integrating digital wallets, cryptocurrencies into traditional retail channels and handling blockchain solutions for mobile payments.
Madison’s previous investments include Japanese crypto exchange Bitpoint and Chinese blockchain services firm Shenzhen City Three Little Bears Technology Limited.