The parent company of BitMEX has restructured, and it points to ambitions outside of crypto
HDR Global Trading, the parent company of popular crypto trading venue BitMEX, announced Tuesday evening it would restructure and create a new holding company to sit on top of the firm's existing operations.
Dubbed 100x Group, the entity will "pursue a broader vision to reshape the modern digital financial system into one which is inclusive and empowering," a press release said.
"100x will become the holding structure for HDR and all their other assets, including the BitMEX platform."
BitMEX is best known for being a pioneer in the bitcoin derivatives market. A first mover in the market for bitcoin perpetual swaps—a futures-like product that tracks the underlying price of bitcoin–the firm has ceded market share in recent months to rivals but regularly sees volumes that top $1 billion daily.
The restructuring was interpreted by some market participants as a potential signal that the new firm, led by BitMEX co-founder Arthur Hayes, will explore new products outside of the crypto market, including foreign exchange. One crypto trading veteran said he wouldn't be surprised if the new entity explored products like "CFDs," contracts for difference.
In a blog post, Hayes wrote (emphasis is our own):
"100x will become the new holding structure for HDR Global Trading and all our other assets, including the BitMEX platform. This evolution will provide us with more freedom to explore, incubate and pursue new opportunities and investments, whilst remaining entirely committed to enhancing BitMEX’s leadership position. The BitMEX platform, brand and legal structure remain entirely unchanged by the launch of the 100x Group, but we will be doubling down on growth of BitMEX through continual product innovation and technology advancement. BitMEX is, and will remain, the cornerstone of our success."
Speaking to whether 100x Group would explore financial products outside of crypto, a spokesperson said:
"Financial services remain slow to transform in the digital era, and we therefore see a role for us to reshape the modern digital financial system. The creation of the 100x Group is designed to provide us with the room to explore, incubate and pursue new opportunities and investments beyond what we’re doing today."
© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
