E-commerce titan Rakuten, Inc. purchases Everybody's Bitcoin Inc. in Japan.
In a surprising move, Japanese electronic commerce and Internet company, Rakuten, Inc., has announced its entry into the world of cryptocurrencies. On August 31, 2018, Rakuten revealed its acquisition of Everybody's Bitcoin, a Japanese cryptocurrency exchange.
Founded in 1997 by Hiroshi Mikitani, Rakuten, Inc. is the owner of the largest eCommerce site in Japan and among the largest in the world by sales. With interests in 70 different services, including travel, digital contents and communications, FinTech services such as credit cards, banking, securities, insurance, and electronic money, Rakuten is now set to expand its horizons into the cryptocurrency market.
The acquisition agreement, disclosed in a press release on Rakuten's blog, involves the purchase of 5,100 shares of Everybody's Bitcoin, totalling 256 million yen, and includes 100% share of the firm. This move marks Rakuten's entry into the cryptocurrency market and is part of its strategy to develop cryptocurrency services.
Everybody's Bitcoin, a cryptocurrency exchange based in Japan, is yet to obtain the official license from the authorities. Despite this, the exchange is fully functional. The acquisition is expected to help in combining the know-how of Everybody's Bitcoin as a cryptocurrency exchange with the know-how of Rakuten Group as a provider of various financial services.
The stock purchase agreement between Rakuten Card Co., Ltd. and Traders Investment, Inc. (parent company of Everybody's Bitcoin) enables the acquisition. The acquisition is scheduled to be completed on August 31, 2018, and the stock acquisition is set for October 1, 2018.
Rakuten, Inc. has also shown an interest in blockchain technology. In 2016, it established a blockchain lab in Belfast for research on blockchain technology. The company expects the growth of cryptocurrency-based payments in e-commerce, offline retail, and P2P payments in the future.
This acquisition by Rakuten, Inc. is another example of traditional companies entering the cryptocurrency market, reflecting a trend of "cryptocurrency race." With this move, Rakuten joins the likes of IBM, Microsoft, and Walmart, who have also shown interest in blockchain and cryptocurrency technologies.
