Seven Stars Cloud Group Inc (NASDAQ: SSC) became the beneficiary of cryptomania Wednesday when it announced the purchase of a 27-percent stake in the Delaware Board of Trade Holdings, Inc., or DBOT, for 1.63 million shares of Seven Stars Cloud common stock.
Seven Stars Cloud, a Chinese cloud-based B2B solutions provider, focuses on supply chain and digital finance solutions powered by artificial intelligence. The deal was originally reported as speculation by the New York Post Tuesday. The move by Chinese entertainment mogul Bruno Wu, the man behind Seven Stars Cloud, is an attempt to start trading bitcoin-like securities, according to the Post.
Money manager Jon Najarian tweeted: "One of China's biggest business and entertainment moguls has through $SSC purchased a 27% stake in the Delaware Board of Trade, a 'dark pool' operator & plans to expand into the trading of 'bitcoin-like' securities."
One of China's biggest business and entertainment moguls has through $SSC purchased a 27% stake in the Delaware Board of Trade, a 'dark pool' operator & plans to expand into the trading of 'bitcoin-like' securities $BTC.X #CryptoNews
— Jon Najarian (@jonnajarian) December 20, 2017
DBOT is the only blockchain-based alternative trading system that's fully licensed by the SEC, according to a release from Seven Stars Cloud.
See also: Cryptocurrency Mining: What It Is, How It Works And Who's Making Money Off It
Pursuant to the transaction, Seven Stars Cloud will become the largest shareholder of DBOT. Robert Benya, the chief revenue officer at the Chinese company, will become a DBOT board member.
Seven Stars Cloud Group was trading up 26.56 percent at $5.46 before the close Wednesday.
Expect Nvidia, AMD To Ride Cryptocurrency Wave Into 2018
See more from Benzinga
- United Continental Earns Upgrade On Revenue Lift-Off Steps
- NXT-ID Rallies After Announcing Cryptocurrency Retail Payment Platform
- Alcoa Could Return 5M In Capital In 2018, Credit Suisse Says
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.