SBI Holdings in acquisition talks with Bitbank for subsidiary status

SBI Holdings has submitted a letter of intent to acquire shares in Bitbank, aiming to make the major Japanese crypto exchange operator a consolidated subsidiary, according to a statement from SBI Chairman and President Yoshitaka Kitao on Friday. The company has begun discussions with Bitbank regarding a capital and business alliance, with acquisition plans proceeding after due diligence and internal procedures, with separate discussions to follow on specific timing and structure.

Market Position and Security Track Record

Bitbank operates one of Japan’s major domestic crypto exchanges and has not experienced a hacking incident since its founding in May 2014. The company positions security as a key part of its market offering.

Strategic Rationale

As crypto assets move toward inclusion under the Financial Instruments and Exchange Act, SBI said bringing Bitbank into the group would strengthen its position in Japan’s crypto market. The acquisition is part of SBI’s broader consolidation strategy in the crypto sector.

SBI’s Consolidation Strategy

The talks come as the group continues to consolidate activity into its in-house crypto exchange arm, SBI VC Trade. Last month, SBI merged crypto exchange Bitpoint Japan into the unit as part of efforts to streamline operations and improve profitability.

Recent Bitbank Developments

Earlier this week, Bitbank rolled out a crypto-linked credit card that enables users to pay their bills in bitcoin and other assets based on their exchange holdings—a first for the domestic market. The card also offers a 0.5% cashback in crypto on monthly spending.