MGT Capital Investments Inc. has formally entered into a letter of intent (LOI) with Tera Group Inc., the owner of regulated swap execution facility (SEF) TeraExchange LLC.
Back in October TeraExchange, under the authorization of US derivatives watchdog CFTC, completed their inaugural bitcoin transaction. The initial trade was completed between digitalBTC, the world’s first Bitcoin-focused company to commence trading on a major stock exchange, and a hedging counterparty.
The nature of the LOI will be the issuing of MGT’s shares of common stock to the current owners of Tera, which represent 70% of the pro-forma equity of the combined companies at closing, pending regulatory approval.
Both MGT and Tera are working towards a targeted date of March 16, 2015, whereby the agreement will be finalized with approval for share ownership transfer by the Securities and Exchange Commission (SEC).
Did COVID-19 Save the Forex Industry?Go to article >>
Tera is most widely known for its integral role in the development of bitcoin derivatives in the industry. In particular, its Tera Bitcoin Price Index (TeraBit) works in tandem with a variety of global Bitcoin spot exchanges.
Said Christian D. Martin, chairman, chief executive officer and co-founder of Tera, in a recent statement, “Growing consumer and merchant adoption of bitcoin is driving demand for regulated capital markets solutions. By combining with MGT, Tera will create a unique public offering to support the essential infrastructure needed for a vibrant global bitcoin ecosystem.”
“The proposed merger with Tera gives immediate and future value to our stockholders, while creating a robust platform for the growth of the industry’s first publicly listed bitcoin derivatives exchange. The Bitcoin industry attracted over $400 million of investment capital from some of the world’s most prominent investors over the past 12 months; we see our move today as further progress in the broader adoption of the industry,” added H. Robert Holmes, chairman of MGT’s board of directors.
This story was first published on our parent website, Forex Magnates.