BTG Pactual Bank’s $99M Acquisition of Orama

As part of its strategy to expand its digital platforms, the major Brazilian investment bank BTG Pactual acquired the cryptocurrency-friendly brokerage Orama.

BTG Pactual has agreed to purchase all of Orama’s shares for 500 million Brazilian reals ($98.7 million). BTG Pactual stated on October 2 that the acquisition is part of the bank’s digital expansion strategy and provides additional investment opportunities.

BTG’s digital platforms partner Marcelo Floro exclaimed, “We are very excited about the acquisition, which will provide Orama customers with access to the complete BTG platform.”

The acquisition is subject to the requisite regulatory approvals from authorities, including the Central Bank of Brazil, according to the announcement.

Orama, which was founded in 2011, is reported to have roughly 18 billion reais ($3.6 billion) in assets under custody and approximately 360,000 clients.

Orama, which specializes in the dissemination of investment funds and fixed-income products, has also investigated cryptocurrency investment.

In April 2022, the wealth management division of Orama, Orama Singular, launched a digital asset-focused actively managed fund.

Block3 is a multimarket cryptocurrency investment fund that offers exposure to Bitcoin, tokens, derivatives, and other crypto assets.

According to Bloomberg data, the value of Orama’s digital asset fund increased by more than 30 percent, from 90.5 reais ($17.9) in October 2022 to 118.8 reais ($23.5) in September 2023.

Block3 Ativos Digitais FIM IE one-year price chart. Source: Bloomberg

It is unknown if BTG Pactual’s acquisition of Orama will result in new crypto-related products at the bank. In addition to its acquisition of Bitcoin-friendly Orama, BTG Pactual has been active in crypto-related endeavors in recent years.

Using the bank’s custody services, in April 2023, the bank announced its intentions to launch BTG Dol, a new stablecoin pegged to the US dollar at a 1:1 ratio.

Previously, the bank introduced a crypto trading app that allowed customers to invest directly in cryptocurrencies.