Seven Stars, citing potential of blockchain, buys large stake in Board of Trade

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Seven Stars Cloud Group, Inc. bought a 27 percent stake in The Delaware Board of Trade Holdings Inc. for an undisclosed amount. 

According to a release, DBOT is the first and only blockchain based Alternative Trading System fully licensed by the SEC.  Blockchain technology allows documents to stay or move around on servers without being altered or hacked and can allow cryptocurrencies. 

Cryptocurrency is a method of exchange that uses cryptography code and blockchain features to ensure secure transactions.

Shares of Seven Stars rose 28 percent on news of the transaction. The company is based in   Beijing and is not yet profitable. 

The  value of the deal was not disclosed, although based on the Seven Stars stock price, the stock is valued at $7 million to $8 million.

Blockchain technology is seen as a way to carry out stock and other transactions more smoothly and safely. 

  The transaction will make SSC the largest shareholder of  the board of trade and as part of the purchase deal, SSC President and Chief Revenue Officer, Robert G. Benya, will become a  member of the board of directors 

DBOT (http://dbottrading.com/) operates three business lines from offices in the Hercules Plaza in downtown Wilmington. 

With the transaction, Seven Stars Cloud will leverage the DBOT’s established  blockchain based technology, a release stated. 

John F. Wallace, the former chairman of the Philadelphia Stock Exchange,  is the current CEO and Chairman of DBOT and serves as Executive Chairman of NextGen.  Commenting on this transaction.

Wallace stated, “We are thrilled to further partner and form a deeper business relationship with SSC as DBOT and its various business lines become key engines that power SSC’s Global Trading Platform Network for Initial Exchange Offerings.”

The Board of Trade got off to a rocky start, with numerous delays and a  controversy over the use of a county loan for start-up costs.

 
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