SBI acquires Japanese crypto exchange Bitbank for $289 million

Japanese financial group SBI announces the acquisition of crypto exchange Bitbank, based in Chuo-ku, Tokyo. The deal is valued at ¥46.7 billion, approximately $289 million. Upon completion of the acquisition, Bitbank will become a wholly owned subsidiary of SBI, making the group the largest player in the Japanese crypto industry.

SBI, through a subsidiary, will first buy back shares from individual shareholders, including Bitbank’s founder. This process starts as early as August. Afterwards, Bitbank will acquire shares from existing shareholders MIXI and Ceres, which should be completed by the end of October, reports Nikkei.

SBI becomes market leader in Japan

With the acquisition of Bitbank, SBI combines its activities with its own crypto exchange SBI VC Trade. Together, the two platforms had approximately 2.92 million accounts as of April this year. The total assets under management of the combined group amount to around ¥1.1 trillion, which translates to roughly $6.2 billion.

This allows SBI to dethrone all competitors and claim the top position in the Japanese crypto market. Bitbank is currently the third-largest crypto exchange in Japan, and the combination with SBI VC Trade results in significant scaling. After this deal, SBI’s crypto holdings exceed the ¥1 trillion mark.

Acquisitions in the crypto industry gain momentum

SBI’s move fits a broader trend in which large financial institutions and crypto companies are increasingly focusing on acquisitions. For instance, Coinbase CEO wants more acquisitions after his recent megadeal of $2.9 billion. Consolidation in the sector is accelerating, with large players trying to strengthen their market positions through strategic acquisitions.

For Japan, this acquisition is a significant moment. The country has a regulated and transparent crypto market, and the emergence of a dominant player like SBI gives the sector an extra boost there. The deal is expected to be fully completed by the end of October.