Domain Energy to Buy 5.56% Stake in VAX for HKD 100M
Domain Energy Holdings, a Hong Kong-listed company, will acquire a 5.56% interest in the licensed virtual asset exchange VAX for HKD 100 million. The acquisition comprises HKD 24 million in cash and HKD 76 million via a three-year zero-coupon convertible bond. The bond carries a conversion price of HKD 2.5 per share. This acquisition marks Domain Energy’s debut in owning equity in a virtual asset exchange. The strategic investment reflects rising demand for licensed trading platforms and underscores confidence in VAX’s growth prospects.
Neutral
Domain Energy’s minority stake acquisition in VAX is a modest investment that signals confidence in the licensed virtual asset exchange sector but is unlikely to sway broader market trends. Past minority acquisitions in crypto platforms have had limited price impact, serving more as a strategic endorsement than a market mover. In the short term, traders may watch VAX’s trading volumes for modest gains, while in the long term, the deal could encourage similar strategic investments without dramatically altering market dynamics.