Rakuten joins a growing list of companies that have made solid investments in the cryptocurrency sector. The Japanese company has agreed a $2.4 million deal to acquire 100% stake in local bitcoin exchange Everybody?s Bitcoin.? The transaction should close on or before October 1, 2018.
Everybody?s Bitcoin Acquisition
The acquisition is part of Rakuten bid to expand its global user base that it hopes to achieve by delving deeper into the cryptocurrency business.? The company plans to use the exchange to enhance the amount of P2P payments and crypto patents it handles on offline retail outlets.
?In order to provide cryptocurrency payment methods smoothly, we believe it is necessary for us to provide a cryptocurrency exchange function.? the company in a statement.
The e-commerce company said it took the bold step to acquire Everybody?s Bitcoin on growing demand from forex customers. The company started accepting bitcoin payments in 2015.
However, the company faces an uphill task to turn around the prospects of the Tokyo-based exchange, which is struggling with a lot of issues.? Following the $560 million Coincheck hacking incidences in January, the exchange is one of many that lost its licenses as authorities cracked the whip on exchanges without sufficient control measures
A net loss of over $440,000 for the fiscal year ending March 2018 is another nagging issue that Rakuten will have to contend with as it moves to turnaround Everybody?s Bitcoin fortunes.? The Japanese Company has already reiterated plans to assist the embattled exchange in maintaining an effective and reliable internal system as it seeks to gain the much needed regulatory license.
The acquisition of Everybody?s Bitcoin marks yet another critical step in the e-commerce company?s push for growth in the cryptocurrency space. In January, the company announced plans to launch a cryptocurrency. While it is still unclear when the digital currency will come into operation, the company intends to use it in its business, made up of on demand video service as well as mobile messaging service and travel company.