Beijing-based FinTech firm AGM Group Holdings announced Friday that it acquired 75 percent equity stake in SIFT Capital Partners, an asset management firm based in Hong Kong. Among other perks, this new deal with SIFT is expected to help AGM capitalize on the rapidly growing global cryptocurrency market.

The deal is of great significance for both companies as it will help them put up a joint effort to bank on the growing frenzy surrounding blockchain and digital assets. (Yes, despite a massive slowdown over the past few months, the popularity of cryptocurrencies is steadily on the rise in most major economies.)

The Stage Is Set for AGM’s Big Crypto Plans

AGM, which is a leading provider of FinTech solutions dealing mostly with financial institutions such as brokerage firms, wrapped up the deal with SIFT for a cash consideration of nearly $0.8 million (HK$ 6 million).

Financial technology concept. Source:
Financial technology concept. Source:

The acquisition of the Type 9 firm (asset management) now awaits the fulfillment of all closing conditions, along with the mandatory regulatory approval by Hong Kong’s Securities and Futures Commission (SFC).

In addition to making room for AGM in Hong Kong’s asset management market, the deal with SIFT also has an underlying focus on cryptocurrency trading. Both companies will combine their resources to lay the foundation for AGM’s planned investment in digital assets.

A Second Acquisition to Expand Resources

AGM Group Holdings also announced an equity acquisition deal with AGM Global Asset Management Ltd. The deal was executed via a related party, and it will give AGM Group 100% equity interest in the Cayman Islands company.

The financial aspects of the deal, while undisclosed as of press time, is said to be nominal — presumably because AGM Global is not conducting any business currently.

Speaking of the importance of the two acquisitions, Zhentao Jiang, Chairman of AGM, remarked:

“The two acquisitions will create potential channels for us to further growth into the investment and asset management businesses. We have been evaluating market opportunities in these new businesses across a wide variety of asset classes including private and public equities, foreign currencies, options and futures, as well as cryptocurrencies.”

Jiang also acknowledged that AGM has an elaborate crypto investment plan encompassing Bitcoin, Ethereum, Tether, Dash, EOS, FilmC, and Stellar.

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