Hong Kong-listed BC Technology Group, the parent of crypto exchange OSL, announced on Wednesday that it is raising HKD 697 million (around $90 million) in a top-up share placement.
The company appointed Morgan Stanley as the placing agent for the round in which it is raising money from institutional investors.
The funding came at a time when the demand for digital assets are skyrocketing among both retail and institutional investors. The company detailed that the proceeds will be utilized to expand the reach and capability of OSL, the institution-focused cryptocurrency exchange.
The Group will further utilize the funds to establish its position as an institutional exchange on the global markets.
Commenting on the growing crypto market demand, OSL CEO, Wayne Trench said: “The digital asset market experienced a significant shift in 2020, with regulatory clarity and institutional investment driving market capitalization to new all-time highs.”
“With the participation of established institutional investors in this placement, we are seeing more evidence that digital assets are attracting significant attention from major traditional finance brands, and we believe this will continue to accelerate going forward.”
Rising Demand for Digital Assets
Moreover, he is optimistic about the future of the digital currency market and is expecting to be on the frontline of this nascent industry. Indeed, the demand for Bitcoin among the mainstream financial institutions is prominent now with the investment of corporations and hedge funds.
OSL is regulated in Hong Kong. The exchange recently made headlines for being among the first to suspend XRP trading after the US regulator’s lawsuit.
“The placement is a major milestone and the next step in the rapid growth of the Group’s OSL digital asset platform,” Trench added. “It allows us to invest in the tools to reach more institutional customers around the globe while also continuing to scale our SaaS solution.”