HK: Diginex sells 51% stake in crypto mining business for $60m

Photo by Andre Francois on Unsplash

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.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.