Bitcoin Shop, an online digital currency retailer has announced it has invested in Express Technologies, operators of Expresscoin, a US based site that lets users buy bitcoin using checks, money orders, wire transfers, and via cash deposits. According to Bitcoin Shop, terms of the deal are the purchase of $150,000 convertible promissory note, which can be elected to be converted in the future for approximately 2% of Express Technologies equity at a pre-money valuation of $9 million. In addition, Bitcoin Shop has received an option to invest up to $1 million at the same valuation terms until October 24th of this year. If the option, which can be paid in either US dollars or bitcoins is fully exercised, Bitcoin Shop would hold about 13% ownership in Express Technologies.
For Bitcoin Shop, the deal is the company’s second strategic investment since pivoting to become a bitcoin company. Earlier this year, Bitcoin Shop participated in digital currency merchant processing company, GoCoin’s $1.5 million series A funding round. Similar to that deal, where GoCoin provides merchant services for Bitcoin Shop, the online retailer stated that they will be promoting Expresscoin as a solution for the store’s buyers to purchase bitcoins. In addition to the funding, Bitcoin Shop’s CEO Charles Allen will be joining the advisory board of Express Technologies.
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In the public statement of the funding, Will Wheeler, CEO and co-founder of Express Technologies commented that “Bitcoin Shop offers a great service to their customers by allowing them to search from hundreds of categories of products and make purchases with virtual currencies. We look forward to integrating our platforms to provide our customers a more robust solution.”