Bitcoin Group Acquires 268-Year Old German Bank For Over $14M

Cryptocurrency investment firm Bitcoin Group has decided to plunge funds into the purchase of a century-long Munich-based financial institution Bankhaus von der Heydt. Based on the signed agreement, the acquisition is worth 150,000 shares and 14 million euros which are approximately $14.75 million. Notably, the value of the purchase is subject to change as it is highly dependent on the equity of the target company.

The acquisition process is yet to be finalized as it awaits the approval of the region regulator German Federal Financial Supervisory Authority otherwise known as BaFin. According to Bitcoin Group’s plans, the acquisition process would close in the Q3 of 2023. This acquisition will provide Bitcoin Group with the opportunity to wield a full banking license in Germany.

Bankhaus von der Heydt started out as a family-owned cloth export enterprise in 1754. More recently, it has been trying to build a bridge between heritage and financial technology by adding blockchain-based operations to other financial services which it offers. Therefore, Bankhaus von der Heydt has been an active player in the digital assets and tokenization ecosystem.

Change of Course in the Crypto Industry

Amidst a series of layoffs this year, crypto derivative exchange platform BitMEX mentioned its intention to acquire the 268 years old bank.

BXM Operations AG and Bankhaus von der Heydt’s current owner, Dietrich von Boetticher went as far as signing a purchase agreement while waiting for the approval of BaFin. Later in Q1 of 2022, it was announced that both entities mutually decided to forgo the acquisition.

Since news of Bitcoin Group’s acquisition, its shares have risen 0.6% to 20.22 euros in Germany.  Noteworthy, news of this acquisition comes at a time when regulators have their eyes set on crypto exchanges due to the implosion of Bahamian-headquartered FTX Derivative Exchange. 

This move by Bitcoin Group is an abrupt change from the narrative since the implosion of FTX.

Many traditional financial institutions have redirected their focus towards acquiring troubled crypto firms ever since the FTX liquidity crunch erected pillars of mistrust in the hearts of investors. Almost a week ago, investment giant Goldman Sachs announced plans to purchase beleaguered crypto exchanges at a discounted price.