(Bloomberg) — Bitcoin Group SE is contemplating a bid for Bankhaus von der Heydt, the 268-year-old German financial institution that’s stumbled with its personal strikes into cryptocurrencies and digital belongings.

The crypto and blockchain investor is in negotiations with a number of potential targets, together with Bankhaus von der Heydt, the corporate mentioned in an announcement late Thursday that confirmed a Bloomberg Information report.

Based in 1754, Munich-based Bankhaus von der Heydt has been speaking to potential consumers after a deal to promote itself to crypto-derivatives trade BitMEX fell by, individuals conversant in the matter have mentioned. A sale could worth the financial institution at round €20 million ($19.6 million), the individuals mentioned, asking to not be recognized discussing confidential info.

Bitcoin Group, additionally primarily based in Germany, owns futurum financial institution AG, a buying and selling platform for digital currencies. Deliberations are ongoing and there’s no certainty they’ll lead to any transaction. 

A spokeswoman for Bankhaus von der Heydt declined to remark.

Bankhaus von der Heydt grew to become one of many first lenders in Germany to supply buying and selling and custody companies for digital belongings, betting that demand for cryptocurrencies would assist it reverse years of losses. However prices to construct out the know-how have pushed the financial institution additional into the pink. 

Proprietor Dietrich von Boetticher is reluctant to proceed injecting capital and with out a recent supply of money, the financial institution could also be compelled to close down, based on the individuals. Bankhaus von der Heydt just lately cancelled servicing contracts with a number of crypto funds in a step that may facilitate an orderly wind-down, they mentioned.

The BitMEX deal collapsed after that firm’s backers agreed to pay $100 million to settle allegations that they allowed years of unlawful trades, and two founders admitted they failed to ascertain an anti-money-laundering program on the trade.

Any bidders for Bankhaus von der Heydt must go muster with German regulator BaFin, which is monitoring the state of affairs, the individuals mentioned.

–With help from Nicholas Consolation.

©2022 Bloomberg L.P.




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