Tech giant Yahoo confirmed that it will acquire a 40 percent minority stake in a Japanese cryptocurrency exchange later this year through its Yahoo Japan subsidiary.
While financial terms weren’t disclosed, the acquisition of BitARG Exchange Tokyo is estimated to be worth two billion to three billion yen, according to Reuters. That values the deal at $18.5 million to $27.8 million.
This latest crypto acquisition comes a week after Japanese online brokerage firm Monex Group announced it will purchase Japanese cryptocurrency exchange Coincheck for $34 million. In January 2018, Coincheck lost an estimated $530 million after a bombshell hack that’s considered the worst in crypto history.
Tech Giants Signal Confidence In Cryptocurrency Market
Yahoo’s entry into the crypto market signals its quiet confidence in the future of digital currencies and in blockchain, the technology behind bitcoin.
Two days ago, Ripple — the blockchain-based payment network — revealed it invested $25 million of its XRP cryptocurrency into Blockchain Capital Parallel IV, a fund that will invest in blockchain ventures.
Ripple was co-founded by tech angel investor Chris Larsen, who is now the richest person in crypto. Larsen has an estimated net worth topping $7.5 billion.
Tom Lee Sets $25,000 Year-End Bitcoin Price Target
All these bullish developments come in the wake of the worst first quarter in bitcoin’s history.
After nosediving below $7,000 for the past two weeks, bitcoin prices surged more than 10 percent on April 12. Today, bitcoin’s price is hovering at roughly $8,100 a coin.
Fundstrat co-founder Tom Lee, an avowed cryptocurrency bull, has set a $25,000 bitcoin price target for the end of 2018.
“We still feel pretty confident that bitcoin is a great risk-reward and we think it could reach $25,000 by the end of the year,” Lee said.
Tech billionaire Tim Draper is even more bullish. He has set a $250,000 bitcoin price target for 2022.
Crypto Billionaires: Bitcoin Is Here To Stay
Despite all the hand-wringing by skeptics, bitcoin billionaires like the Winklevoss twins, Cameron and Tyler, are convinced crypto is here to stay. Similarly, Changpeng Zhao, the founder of Binance — the No. 1 cryptocurrency exchange in the world — says crypto is the future.
“I’m convinced 100 percent that crypto is the future,” Zhao (nickname: CZ) said. “I just know it will happen.”
Zhao meteorically rose to fame from an obscure computer coder into a crypto kingpin whose net worth tops $1 billion. In February 2018, Forbes released its first-ever list of cryptocurrency billionaires. And Zhao made the cover of the issue and landed at No. 3 in the rankings.