CoinDesk
SBI Holdings is paying $289 million to acquire Japanese crypto exchange Bitbank, its largest crypto consolidation move yet and one that doubles the group's assets under custody to roughly 1.1 trillion yen across 2.9 million customer accounts, according to investment bank Architect Partners.
The deal brings SBI a Financial Services Agency-licensed venue, 570 billion yen in custody assets, 960,000 retail and institutional accounts, and Japan Digital Asset Trust, an institutional custody business. Bitbank also operates one of Japan's deepest altcoin liquidity pools, capabilities that would be far costlier and slower to build from scratch.
Why it matters
Architect Partners co-founder Steve Payne framed the transaction as a purchase of regulated scale, not earnings, noting SBI is paying roughly eight times revenue for a business that posted an operating loss as revenue fell 27% in fiscal 2025. That multiple is close to the 9.7 times revenue Coinbase paid for Deribit, and only makes sense as a bet on a licensed position in a market where roughly 90% of crypto exchanges are already unprofitable.
The deal lands as Japan's lower house passed legislation on June 11 that would shift crypto assets under the Financial Instruments and Exchange Act, aligning them with securities regulation, lowering the tax rate on crypto gains to a flat 20% and opening the door to spot bitcoin ETF products. Architect Partners expects those higher compliance costs to thin the field of Japan's 27 registered exchanges by as much as half.
Market impact
Payne flagged bitFlyer, the last large independent exchange and already private-equity owned, as an obvious next domino, with foreign platforms more likely to buy a licensed seat than build one. SBI's broader digital asset footprint, spanning SBI VC Trade, Bitpoint Japan, Ripple's RLUSD stablecoin distribution, a Visa-branded crypto rewards card and a stablecoin payments initiative, positions the group to integrate trading, custody, tokenization and settlement on a single platform.
Frequently asked questions
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How much is SBI paying for Bitbank?
SBI Holdings is paying $289 million to acquire Japanese crypto exchange Bitbank, its largest crypto consolidation move to date. The deal roughly doubles SBI's crypto assets under custody to about 1.1 trillion yen across 2.9 million customer accounts.
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Why is SBI paying 8x revenue for a loss-making exchange?
Architect Partners framed the valuation as a purchase of a regulated Financial Services Agency-licensed seat rather than near-term earnings. The multiple is close to the 9.7x revenue Coinbase paid for Deribit and reflects the strategic value of Bitbank's license, custody business and altcoin liquidity pool.
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How could Japan's new crypto legislation affect the industry?
Legislation passed by Japan's lower house on June 11 would shift crypto assets under the Financial Instruments and Exchange Act, lower the tax rate on crypto gains to a flat 20% and clear the way for spot bitcoin ETFs. Architect Partners expects the higher compliance burden to shrink the field of 27 registered…
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Which Japanese exchange could be the next consolidation target?
Architect Partners co-founder Steve Payne named bitFlyer, the last large independent exchange and already private-equity owned, as the obvious next domino. He also said foreign platforms seeking Japan exposure are more likely to buy a licensed seat than build one from scratch.
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What is Bitbank bringing to SBI's crypto business?
Bitbank contributes 570 billion yen ($3.5 billion) in assets under custody, 960,000 customer accounts, an FSA license, one of Japan's deepest altcoin liquidity pools, and Japan Digital Asset Trust, an institutional custody business SBI would have struggled to build internally.
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