B2C2 is in sale discussions with multiple buyers but faces valuation hurdles amid challenging market conditions.
B2C2, a prominent crypto market maker primarily owned by SBI Holdings, is currently in discussions regarding a potential sale, having attracted interest from several buyers over the past 18 months.
However, negotiations have been complicated by disagreements over the company's valuation, rumored to be over $1 billion. Achieving this figure may prove difficult in the current market environment.
The London-based firm has been exploring the possibility of selling either part or all of its operations, but it remains unclear if any negotiations are still ongoing. A spokesperson for B2C2 declined to comment, and SBI Holdings has not responded to inquiries.
Founded in 2015, B2C2 acts as an institutional cryptocurrency market maker and liquidity provider, facilitating trades for banks, exchanges, hedge funds, and other financial entities. The firm uses proprietary technology to maintain market liquidity across various asset classes.
This year has been challenging for crypto markets, with a decline in trading volumes affecting revenue for market makers reliant on trading activity. Analysts expect continued consolidation within the digital asset sector as companies seek to strengthen their market positions and expand service offerings.
SBI Holdings acquired a 90% stake in B2C2 in December 2020 with an initial investment of $30 million. While B2C2's financial performance is not reported separately, SBI's broader crypto-asset segment reported revenues of 89.6 billion yen ($550 million) for the fiscal year ending March 31, reflecting a 10.9% increase from the previous year.
Additionally, SBI Holdings has recently announced plans to acquire cryptocurrency exchange Bitbank for approximately $289 million, further indicating its commitment to expanding its footprint in the crypto sector.
