Japan's SBI in Talks Over Joint Venture to Make Crypto a Core Revenue: Source

SBI founder and CEO Yoshitaka Kitao said his firm would turn the planned crypto venture into a core source of profitability.

Feb 15, 2021 at 9:53 a.m. UTC
Updated Sep 14, 2021 at 12:11 p.m. UTC

SBI Holdings, a major Japanese financial-services firm, is in discussions with foreign financial firms to establish a cryptocurrency joint venture.

According to a report from Reuters on Monday, the venture aims to expand SBI's existing cryptocurrency endeavors into a significant revenue stream.

SBI founder and CEO Yoshitaka Kitao said his firm would "definitely" turn the venture into a core earner for SBI, while adding his firm is considering large-scale mergers and acquisitions (MA).

Kitao noted at least two deals were on the table for discussion with possible joint-venture partners, but declined to disclose further details.

The plans were apparently prompted by cryptocurrency's entrance into the financial mainstream. “Institutional investors – mainly hedge funds – have recently started investing in cryptocurrencies ... Not just institutional investors but also Elon Musk," Kitao told Reuters on Friday.

Last Tuesday, Tesla, the electric-car maker founded by Musk, disclosed it had bought $1.5 billion in bitcoin as part of its new investment policy to “acquire and hold digital assets from time to time or long term.”

Kitao said in order to become "number one," SBI's choice would be to buy a leading company or create alliances with other major global companies.

"Our MA strategy will not be something like taking minority stakes in many companies," he said

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