- OSL raised $300 million, marking Asia’s largest publicly reported equity funding in the digital asset sector.
- The company will use the funds to support global growth, boost payment infrastructure, and pursue acquisitions.
- The financing round featured a share price below market value, with insider BGX acquiring 30% of new shares.
- OSL reported a profit of $22 million in 2024, with client assets under custody reaching $650 million.
- The firm plans to buy Canadian company Banxa and expand into Southeast Asia, Europe, and the Middle East.
Hong Kong-based digital asset exchange group OSL has secured $300 million through an equity financing round. This is the largest publicly disclosed funding of its kind in Asia’s institutional digital assets industry. The company plans to use the money to expand internationally and to develop payment systems aimed at enterprise customers.
The financing round involved shares issued at $1.94, a discount compared to the previous closing price of $2.29. The new shares represent 16.14% of OSL’s existing share capital, or 13.9% after the issuance is completed. Notably, BGX, an insider that already held nearly 30% of the company, purchased another 30% of the new shares. BGX is owned by Liu Shuai, who also controls crypto platform Bitget and holds majority voting control in OSL.
OSL will allocate the new funds toward strategic acquisitions, building payment and stablecoin infrastructure—which are systems that let companies adopt and use stable-value cryptocurrencies—and supporting day-to-day operations. The company has been expanding rapidly since late 2023, entering new markets in Japan and Europe in 2024.
In its recent financial results, OSL reported $49 million in digital asset revenues and turned a profit of $22 million. Part of these earnings stemmed from a $15 million gain due to the revaluation of digital assets bought during the year, exceeding standard returns for Bitcoin during the same period.
At the end of 2024, OSL managed $650 million in client assets. The firm was the first digital asset trading platform in Hong Kong to receive a license, although ten other licensed competitors are now active. Before the latest financing, OSL had reached a market capitalization of $1.39 billion.
As part of its expansion plans, OSL intends to acquire Banxa, a Canadian-listed crypto payments firm, for up to $63.3 million. OSL sees this purchase as a way to improve “on-ramp” and “off-ramp” services for cryptocurrencies, which help clients move funds between traditional and digital assets, and support further growth in stablecoins. The company also plans more acquisitions in Southeast Asia, Europe, and the Middle East.
“This US$300 million equity raise marks a major milestone in our journey and reflects strong conviction in OSL’s digital asset strategy and execution,” said Ivan Wong, Chief Financial Officer. The new funding strengthens OSL as it continues to build regulated payment infrastructure and capitalize on growing institutional interest in digital assets across the Asia-Pacific region.
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