CMC Markets (LON: CMCX), known for its contracts for differences (CFDs) offering, has increased its stake in the blockchain company StrikeX Technologies from 33 per cent to a majority 51 per cent.
Direct Control over StrikeX
With this acquisition, the broker now has direct control over StrikeX’s technology and product roadmap. The announcement today (Wednesday) also noted that StrikeX is now fully integrated into the CMC Markets group.
As the parent company, CMC aims to fast-track product development, regulatory approvals, and global distribution of StrikeX’s digital finance solutions.
Additionally, CMC increased its holding of STRX cryptocurrency tokens from 10 million to 15 million. However, the company did not disclose the financial terms of the acquisition.
“This majority acquisition represents a significant step forward in our ambition to lead in digital assets,” said Lord Peter Cruddas, Founder and CEO of CMC Markets.
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An Interesting Move after Writing Off Initial Investment
Headquartered in London, CMC first acquired a stake in StrikeX in mid-2023, marking its entry into the blockchain sector. However, the broker later wrote off its £2.8 million investment, noting it as unrecoverable. Despite that, CMC continued to support StrikeX’s “strategic objectives”.
The latest press release shared with Finance Magnates highlighted that the majority stake in the blockchain firm will further strengthen CMC’s digital strategy, offering immediate access to proprietary blockchain technology, Web3 infrastructure, and tokenised asset solutions.
“We are building a future-ready platform to deliver regulated, institutional-grade access to tokenised assets, blockchain-powered solutions, and the next generation of financial services,” added Lord Cruddas.
Meanwhile, CMC has opened a new office in Bermuda after receiving a licence from the Bermuda Monetary Authority (BMA), as part of its broader global expansion. The firm also became a white-label technology provider for Revolut, which has launched CFDs in three European countries, as well as for ASB Bank in New Zealand.
This article was written by Arnab Shome at www.financemagnates.com.
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