Why Is The Bitcoin Group Buying an Old German Bank?

On Dec 13, 2022

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Bitcoin Group SE has entered into a deal to acquire Bankhaus von der Heydt for €14 million (equivalent to $14.75 million) and an additional 150,000 shares. The terms of this deal are flexible, and they could change depending on the developments that impact the target company’s equity.

Bitcoin Group SE to acquire one of the oldest German banks

Bitcoin Group SE is acquiring one of the oldest banks in Germany. Bankhaus von der Heydt was founded in 1754 and is also fully licensed. The bank also provides a wide range of financial services related to the crypto industry in Germany.

In 2021, the bank partnered with Fireblocks to extend crypto services to its clients. The bank has also made numerous efforts to expand its offerings in the crypto market. Earlier this year, BitMex, one of the popular cryptocurrency exchanges, announced plans to acquire the bank. However, the deal never materialized, with the reason behind the fallout not being disclosed.

The recent partnership deal between Bitcoin SE Group and Bankhaus von der Heydt is subject to being approved by the German Federal Financial Supervisory Authority (BaFin). If the deal gets the regulatory green light, it could be finalized by the end of Q3 2023. The acquisition price for the company has not been fixed, and it is subject to change.

This acquisition adds to the efforts made by Bitcoin SE Group to grow its presence and meet the demands of its investors. The company has already created a diversified portfolio by investing in acquisitions to diversify risks and increase its potential returns.

The company’s website shows it already owns shares in two companies offering financial services. These companies include Futurum Bank AG, which runs a cryptocurrency trading platform known as Bitcoin.de. It has also partnered with Sineus Financial Services GmbH, a financial service provider regulated by BaFin.

Institutional investors are still interested in crypto amid the bear market

The harsh crypto winter that has persisted for the better part of 2022 and the demise of multiple crypto companies such as Celsius, Three Arrows Capital, and FTX have cast a dark shadow on the crypto industry. However, institutional interest has remained notably high.

Willy Woo, an on-chain analyst, tweeted that traditional finance investors were interested in investing in the crypto market. He argued that while the FTX fallout had taken the industry a few years back, it had created an opportunity for traditional finance investors to enter the space.

After the FTX blow up many think it’s set the industry back many years, but this is contrary to the conversations I’ve had. TradFi capital allocators are seeing an opportunity to come in now. They see #Bitcoin and crypto is here to stay and it’s now been de-risked.
— Willy Woo (@woonomic) December 6, 2022

Last week, Goldman Sachs, one of the largest financial institutions on Wall Street, expressed interest in acquiring and investing in crypto companies. One of the executives at the investment bank, Matthew McDermott, said that the institution was conducting due diligence and wanted to invest now when the valuation was low.

McDermott also addressed the FTX crisis, saying that while one of the largest crypto exchanges had collapsed, the technology behind cryptocurrencies continued to perform well.

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