Key facts
- Crypto market maker B2C2 has held takeover talks with multiple potential buyers over the past 18 months.
- B2C2 is reportedly seeking a valuation exceeding $1 billion.
- Valuation has been a primary obstacle in the discussions.
- The firm is 90% owned by Japan's SBI Holdings.
- Consolidation is a significant trend in the digital asset industry.
Crypto market maker B2C2, which is 90% owned by Japan's SBI Holdings, has been in discussions with several potential buyers regarding a sale over the past 18 months. Valuation has emerged as a significant challenge, with B2C2 reportedly seeking a price exceeding $1 billion, a target that sources suggest may be difficult to achieve in the current digital asset market environment.
The London-based firm, founded in 2015, operates as an institutional cryptocurrency market maker and liquidity provider, serving banks, exchanges, brokers, hedge funds, and asset managers. B2C2 utilizes proprietary trading technology to offer liquidity across spot, derivatives, structured products, and over-the-counter markets.
These reported talks occur amidst a broader trend of consolidation within the digital asset industry, as companies seek to expand their institutional offerings and scale operations in a maturing market. The crypto market has faced headwinds this year, characterized by reduced trading volumes, economic concerns, and a decline in risk appetite, which has adversely affected market makers reliant on trading flows for revenue.
SBI Financial Services, a subsidiary of SBI Holdings, acquired its 90% stake in B2C2 in December 2020, following an earlier $30 million investment. B2C2's financial results are consolidated within SBI's crypto-asset business segment, which reported 89.6 billion yen ($550 million) in revenue for the fiscal year ended March 31, a 10.9% increase from the previous year. Profit before tax for the segment remained unchanged at 21.2 billion yen. SBI Holdings recently announced an agreement to acquire cryptocurrency exchange Bitbank for approximately $289 million.