Expresscoin Raises $150k in Funding from Bitcoin Shop
The new funding is the cryptocurrency-buying service's first since its formal launch earlier this year.
Digital currency-only online retail outlet Bitcoin Shop has announced a $150,000 investment in cryptocurrency-buying service expresscoin.
The announcement marks expresscoin's first investment since its formal launch in June. Previously operating under the brand Cash Into Coins, expresscoin is aiming to market bitcoin to underbanked consumers by accepting payment methods including money orders, personal checks and wire transfers.
With the announcement, expresscoin will integrate its services with Bitcoin Shop to provide more ways for the website's e-commerce consumers to obtain digital currency.
Bitcoin Shop CEO Charles Allen indicated that the move is one that will expand his company's ability to cater to its customers, stating:
Expresscoin currently sells bitcoin, litecoin, dogecoin, blackcoin and darkcoin, while Bitcoin Shop accepts bitcoin, litecoin and dogecoin.
The Santa Monica-based company previously raised an undisclosed sum from an AngelList syndicate headed by Bitcoin Foundation board member Brock Pierce.
$1m investment option
Bitcoin Shop further indicated that the investment comes in the form of a $150,000 promissory note that values expresscoin at $9m using a pre-money valuation. The note also gives Bitcoin Shop the option to invest an additional $1m in expresscoin before 24th October of this year.
Bitcoin Shop provided additional details about how such an investment could be carried out, suggesting that such a transaction could take place in bitcoin.
The announcement read:
Bitcoin Shop estimates its investment provides the company with a 2% stake in expresscoin at its current valuation.
Increasing shareholder sentiment
While providing a new way for expresscoin to reach consumers, Bitcoin Shop suggested the move will have benefits for, not only its customers, but its shareholders too. Bitcoin Shop announced its decision to go public in February, and has traded over the counter since that time.
Bitcoin Shop framed the move as one that would give investors another reason to consider investing funds in its operations.
The company said: "By investing in ET, Bitcoin Shop not only continues to enhance their service offerings, but also adds a key differentiation strategy for their shareholders by providing indirect exposure to other key service providers in the cryptocurrency industry".
Bitcoin Shop CEO Charles Allen will speak at the North American Bitcoin Conference in Chicago this weekend.
Image via Bitcoin Shop
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