Bitcoin Shop has raised $2,312,500 through the issuing of an additional 7,708,342 units at a price of $0.30 each. The units represent one common share and 1.4 warrants, each warrant convertible into a common share at a price of $0.375.
CEO Charles Allen, COO Michal Handerhan and EVP Charlie Kiser invested a total of $42,500 in the financing.
Although the company undertook cost cutting measures last year, Allen believes the current time is ripe to make new investments. He explained:
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“We believe the sustained decline in the price of Bitcoin has created tremendous opportunities for us to further expand our business and seize opportunities created from the market downturn. With the completion of this financing we believe we are well positioned to be a leading bitcoin and blockchain focused company.”
Recently, Bitcoin Shop has diversified into other areas of the Bitcoin economy, including wallets and mining. Its mining operations are currently one its primary areas of focus, the company now describing itself as “engaged in transaction verification services”, a function performed by the Bitcoin mining network.
Bitcoin Shop is publicly traded on the OTC markets under the symbol BTCS. Its shares have more than tripled year to date as speculators bet that the company’s diversification into other areas of the Bitcoin economy will bear fruit. Shares are currently valued at $0.242, unchanged at the opening of trade today. The company’s market cap is $35.8 million.