The crypto bear market has been the longest on the record books, causing most cryptocurrencies to decline in value by 85% or higher. While the flight of capital from the crypto market has been brutal for retail crypto investors who bought in at the height of the hype bubble, the bear market has proven to be a unique opportunity for corporations seeking to enter the blockchain or cryptocurrency arena.
The latest example of this was demonstrated by the acquisition of Omise, by Thailand’s wealthiest company, CP Group. CP Group is following the lead of others interested in the space, and are taking advantage of the lowered valuations of these crypto-focused companies during the ongoing bear market.
Thailand’s Richest Company Acquires Omise Payments Firm
According to The Block, Omise, the payments company behind the ERC-20-based OmiseGo, has been acquired by the largest private company in all of Thailand, Charoen Pokphand Group (CP Group). The acquisition was reportedly made for the sum of $150 million, according to sources close to the matter.
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CP Group is owned by the 4th richest family in Asia, the Chearavanont family, and is one of the largest conglomerates across the entire globe. The importance of their interest in the cryptocurrency space cannot be overstated.
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The Block reports that CP Group Executive Chairman and Fortune Magazine owner Chatchaval Jiaravanon is working to acquire companies that can be used for crypto payments, such as Omise. The crypto projects being sought include an agricultural division.
Omise is among the leading payment gateways in Thailand, which may have sparked CP Group’s interest. OmiseGo, the token used for payments, has already surged as much as 12% after the news broke.
Other Corporations Eye Crypto Projects During Ruthless Bear Market
It’s not just CP Group that’s got their eye on crypto projects in dire need of support following a long arduous bear market. Los Angeles-based investment firm Maco.la has been scooping up infrastructure companies now that their valuations have nose-dived.
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“We felt like the best way to make money is to buy the infrastructure companies — the picks and shovels — that are helping build the foundation,” explained maco.la co-founder and principal advisor Sheri Kaiserman. “They are coming down in valuation, which is the best part of the crypto winter for us,” she added.
Many corporations are left scratching their head, trying to understand and leverage emerging technologies like cryptocurrencies and blockchain, like the internet before them. During the dot com boom, many companies opted to buy fledgling startups rather than invest in their own infrastructure. Considering this new trend following the bear market, the crypto industry may be witnessing a similar situation across the crypto landscape.