Bitcoin Shop and Spondoolies-Tech have disclosed new details of their proposed merger arrangement.
Bitcoin Shop, previously focused on building a bitcoin-powered e-commerce marketplace, has now shifted its energies to bitcoin mining. It is publicly traded on the OTC Markets.
Israel-based Spondoolies has emerged as one of the more prominent bitcoin mining hardware manufacturers in the world, Bitcoin Shop previously becoming one of its biggest customers.
The companies announced their proposed merger nearly three weeks ago, which would see Spondoolies effectively become available for public trade.
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Bitcoin Shop has announced a strategic investment of $1.5 million in Spondoolies. Combined with two previous rounds, the latest brings total venture investment to $12.5 million.
Bitcoin Shop’s investment gives it a 6.6% stake in the company, implying a total valuation of $22.7 million. Bitcoin Shop is currently valued at $30.7 million. The investment will see the companies operate together and give Bitcoin Shop certain exclusivity rights and pricing for current and future Spondoolies’ products.
Bitcoin Shop CEO Charles Allen becomes the new entity’s CEO. Spondoolies’ current CEO, Guy Corem, will serve as a board member and executive officer. Yuval Rozen, currently CFO at Spondoolies, will serve as CFO of the new entity.
The companies noted that the merger deal is not yet complete and is subject to due diligence. There is a $1 million breakup penalty in the event the deal is not finalized.