Bitkub Online Co is the latest Thai startup to reach a valuation of more than $ 1 billion after selling a controlling stake in the country’s largest bank by market value. Bitkub’s coin tripled in value after the deal was announced.

On Tuesday, Siam Commercial Bank Plc said it would buy 51% of Bitkub for 17.85 billion baht and valued the operator of the country’s largest cryptocurrency exchange at around 35 billion baht.

KUB jumped 200% from a low of 98 cents to a record $ 2.85. With that, Siam Commercial shares jumped up to 3.5% to a six-week high.

Demand for risky assets like cryptocurrencies and equity products has exploded in Southeast Asia’s second largest economy as young investors look for better returns on interest rates, low deposits, and economic recession. Siam Commercial’s expansion into digital assets is happening despite policymakers and regulators warning investors about the risks of crypto assets.

“Bitkub has reached a historic milestone by becoming an important part of Thailand’s digital business infrastructure. Bitkub is no longer just a startup and is now becoming a necessary part of the critical infrastructure for the Thai financial industry, ”said Jirayut Srupsrisopa, CEO and founder of Bitkub Capital Group Holdings Co, which operates Bitkub.

Arthid Nanthawithaya, SCB’s chief executive officer, said the investment in Bitkub “will help SCB Group create long-term value growth amid the new financial world”. It will also help the bank respond to new consumer needs and enter a “new competitive arena that will emerge very quickly over the next three to five years”.

According to the Securities and Exchange Commission, Thailand recorded a high of 217 billion baht in domestic licensed crypto exchanges in May, up from 18 billion baht in November 2020. It has declined since then, averaging around around the August to October period 100 billion baht per month.

Bitkub was founded in 2018 and had a profit of about 1.53 billion baht in the first nine months of 2021 on sales of 3.28 billion baht, said Siam Commercial.

Trading turnover in the January-September period was around 1.03 trillion baht, which is 92% of the total turnover of all licensed crypto exchange operators in Thailand.

A 24-hour turnover of $ 282 million places Bitkub 79th out of more than 300 exchanges worldwide, as rated by CoinMarketCap.

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Annie

According to Bangkokpost

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