Bitcoin Shop is getting into the bitcoin ATM business with its recent $50,000 investment in Coin Outlet.
Coin Outlet is a bitcoin ATM provider which plans on installing units in Los Angeles, Chicago, Dallas, Boston, San Diego, and Berkeley. The company plans on installing 30 nationwide by the end of this year.
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For Bitcoin Shop, the investment further signals its intent on diversifying into the bitcoin economy. Less than a week ago, the e-commerce company got into the mining business through its partnership with Hashmaster. Mining is one area that bitcoin businesses such as exchanges have been diversifying into. ATMs are the other, especially for companies whose exchange operations can synergize with activity on the ATM network. For Bitcoin Shop, however, it would appear that these new ventures will operate independently of their e-commerce business. Said Bitcoin Shop CEO Charles Allen:
“The bitcoin ecosystem is comprised of a few key areas, mining, wallets, exchanges, payment processors and ATMs/financial services. Over this past year we have made several investments and partnerships throughout these key segments of the industry in an effort to lay the foundation for our universal digital currency ecosystem…Additionally, with the help of Coin Outlet we plan to leverage their ATM network as another on-ramp to our planned universal digital currency ecosystem.”
As part of the deal, Bitcoin Shop has the option to make another $100,000 investment by January 15, 2015. They also have the option of exchanging 3.5 million newly issued shares for 75,448 shares from Eric Grill, Coin Outlet’s founder.