GIC, the sovereign wealth fund managing Singapore’s foreign reserve, has invested HK$543.19 million (or $70 million) in Hong Kong-listed BC Group, the parent company of regulated crypto exchange OSL.
The investment was made through a new stock top-up placement where BC Group issued 31,952,500 shares at a price of HK$17 per share to GIC, according to BC Group’s public disclosure at the Hong Kong Stock Exchange on Friday.
BC Group said the proceeds will be used to cover technology-related and capital costs for developing and enhancing its digital asset platform business. Part of the proceeds from the raise will also be retained as reserves “for future expansion in markets including UK, Singapore and America,” the exchange said in the disclosure.
“This investment is a major milestone for our business, reconfirming our strategy to the market,” BC Group CEO Hugh Madden said in a statement shared with The Block. “It’s also a massive win for digital assets adoption in Asia Pacific, particularly the growing digital asset hubs of Hong Kong and Singapore.”
This isn’t GIC’s first known investment into the cryptocurrency space. It was reported in 2019 that GIC participated in Coinbase’s $300 million Series E fundraise in 2018.
In January, BC Group raised $90 million in a stock top-up. Before that, it also raised $20 million from Fidelity International through two phases of equity placement.