TOKYO, JAPAN�-�Media
OutReach�-�11 December 2018 - Recently, the Hong Kong listed company Madison (8057.HK) released
two announcements, in which, Bitmex, the largest cryptocurrency exchange in the
world in terms of market shares in this industry, were deeply involved.

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The
first announcement� from Madison regarding
to the signing of acquisition agreement has verified the market news back in 20
Nov, when Madison announced that Madison Lab Limited was planning to acquired
67.2% of the shares of Bitocean, a cryptocurrency exchange from Japan, which
has come a major factor that boost up 40% of Madison's
stock price that day. Few days later, papers pointed out that, acquisitions
from Madison mainly went to a failure when Madison's stock price increases. An
example was mentioned regarding to this phenomenon, Madison proposed with a
considerably high price to acquire 20% of BITPoint, another licensed exchange
in Japan early this year, but the proposal was terminated a few months later.

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However,
according to the market source, the termination of the acquisition was resulted
from the Madison judgement upon the operation and profitability of BITPoint,
which was considered to not being able to accomplish the profit target. Interestingly.Madison
now decided to spend heavily on equity investment to another exchange of less
appreciating branding value.

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when
comes to the second announcement published in 11 Dec, in which Madison
proclaimed the potential disposal item, 51% of equity
of Madison Lab Limited will be sold to HDR Cadenza Management Limited (HDR), including
51% equity from Bitocean out of the 67.2% hold. Seems
like a joint acquisition action conducted by two new entrants, but it is
pointed by analysts that, HDR can be apparently considered to be the legal
entity of Bitmex, given that the equity structures of HDR and Bitmex are nearly
the same, and that, Bitmex is not supposed to proceed any capital operation by
its own subject to industrial constrains.

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Bitmex
has been the top giant over time in cryptocurrency exchanging with market value
of tens of billions. Despite the weaker popularity with clients of
institutional level compared to top spot trading exchanges targeting to
individual investors, with daily transaction of more than 2 billion US dollar,
Bitmex has almost always been the largest and most active exchange in the world,
any exchanges arise occasionally with a daily transaction more than Bitmex will
drop back very soon.

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Bitocean,
which is about to be jointly acquired by Madison and Bitmex, has a relatively
weak brand value amd less appreciating market potential-the premium profit is
1.408 million HKD by the end of 30 April 2018. Through which, it can be
concluded that, both parties are paying for the licensing fee to comply with
the market.

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It
is considered by market analysts, based on the understanding of the mature
financial market in Japan, Bitmex will firstly provide the most advanced and
confident product to Japanese market, and also with a good confident level, it
will migrant its main entity and major transaction to the protection of
compliance in Japan. Though Financial Services Agency of Japan has posted
strict regulation and constrains to crypto exchanges, Bitmex that mainly
provide BTC forwards in the transactions can benefit from the strict
regulation, which allows it to come up with better marketing strategies that
comply with the regulation.

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In
terms of capital significance, given that the entity involved in this
acquisition, market value of Bitmex is tens of billions of USD, and Madison of
a few billions, and the value of Bitocean can be minor. If Bitmex is inclined
to export its original businesses to this Japanese exchange, the current allotment
of shares may be rearranged.

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Currently,
although the market now has become more and more mature, financial institutes
like asset management companies, pension funds and investment banks have not
step into BTC trading mainly because of the lack of regulation, and the
frequent accidents to the exchanges in terms of security. Nevertheless, Madison
will inevitably become the entrance to financial institutes that plan to invest
on Bitmex after the licensing, considering the security and professional
properties and regulating compliance of Bitmex.

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Madison
acquires CVP Capital Limited and CVP Asset Management Limited possessing No. 1,
4, 6, and 9 licenses from HK SFC. And in 2018 it acquired a tech company, Diginex
High Performance Computing Limited, dedicated to computing power, which not
only stepping in blockchain mining, but also 5G telecommunication given that
advanced computing output power. In addition, a joint venture focusing on
blockchain commercialization consulting, the Blockhouse Technology Limited, was
established by Madison and Oxford University recently. It is not deniable that Madison
is now transforming to financial market, especially in blockchain.