Bitcoin Shop, Inc. acquires a new line of business
Bitcoin Shop, Inc. has announced that it has acquired Bitcoinshop.us LLC, an ecommerce marketplace platform provider that enables shoppers to purchase products using virtual currencies such as Bitcoin, through a share exchange transaction. In connection with the acquisition of Bitcoin Shop, the Company closed on the private placement of its Series C Preferred Stock and Warrants to certain accredited investors with gross proceeds to the Company of USD1,875,000.
Bitcoin is categorized as a cryptocurrency, as it uses cryptography for security, making it difficult to counterfeit. Bitcoin issuance and transactions are carried out collectively by the network, with no central authority, and allow users to make secure, verified transfers.
The Company operates an ecommerce website, where consumers can purchase products using virtual currency such as Bitcoin, by searching through selection of over 400 categories and over 140,000 items.
Charles Allen, the Company’s Chief Executive Officer and Chief Financial Officer, commented, “We are enthusiastic about the growing acceptance of virtual currency as part of the global economy and excited for our customers and the rapidly growing numbers of Bitcoin holders who will now benefit from the opportunity to utilize our ecommerce platform, www.bitcoinshop.us. We’re one of the first publicly traded companies in the virtual currency space with a business to consumer model. We believe this transaction is consistent with on-going efforts to provide us with an opportunity to deliver improved shareholder value in the future.”