Bitcoin Group’s Bold Move
In a surprising yet strategic maneuver, Bitcoin Group SE has officially announced its acquisition of 100% of the shares in Bankhaus von der Heydt, a historic German bank boasting a full banking license. This acquisition, detailed in an announcement on December 12, is set to potentially reshape the landscape of digital asset custody and tokenization services in Germany.
Deal Details: The Big Bucks Behind the Bank
Bitcoin Group SE has laid out a preliminary offer of 14 million euros along with 150,000 shares to the bank’s current owner, Dietrich von Boetticher. Of course, this deal remains pending approval from the German Federal Financial Supervisory Authority (BaFin) before it can be finalized, with expectations leaning towards a closure in the third quarter of 2023. Fingers crossed everyone!
The Quest for Digital Services
It’s worth noting that Bitcoin Group SE was already in talks with several banks as of October, targeting entities like Bankhaus von der Heydt, which has been eagerly trying to dive into the digital asset arena. Bloomberg reported that the bank intended to offer digital asset trading and custody services, a move seen as essential to revamping its profitability. Spoiler alert: they didn’t have enough funds to make it happen alone. Though they launched a euro-denominated stablecoin, EURB, in 2020, regulatory hurdles stopped it from hitting the trading floors.
Previous Acquisitions: Building a Legacy
This acquisition is just the latest in a series of strategic purchases by Bitcoin Group SE within the German financial sector. Remember when they merged with futurum bank in 2020 after buying it in 2018? Or the investment bank Tremmel Wertpapierhandelsbank acquisition, which also took place in 2018 and was subsequently merged into futurum? Talk about a shopping spree!
A Historical Institution: Bankhaus von der Heydt
Founded in 1754, Bankhaus von der Heydt has seen it all. Based in Munich, the bank has witnessed the evolution of finance, though it almost found itself under the ownership of BMX Operations, a company formed by BitMEX executives, earlier this year. But alas, the negotiations fell through in March.
The Bigger Picture: Germany’s Crypto Economy
Interestingly enough, Germany has been recognized as the world’s most favorable crypto economy as per a survey by Coincub in the third quarter of 2022. The survey ranked Germany above the likes of Switzerland and Australia, with the U.S. lagging behind at seventh. Guess it’s safe to say that the German regulators are warming up to cryptocurrencies—maybe a little too slowly for some!
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