BTCS Raises $1.4 Million To Invoke The Crypto-Industry Tech

BTCS Raises $1.4 Million To Invoke The Crypto-Industry Tech

ARLINGTON, VA — On December 22, BTCS Inc (OTCQB: BTCS) a U.S.-based blockchain infrastructure company announced it will close out the year with a $1.4 million finance round. The business recently acquired Spondoolies, the bitcoin miner-manufacturer back in September of this year. The capital was raised through convertible shares of the BTCS common stock.

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BTCSAnother crypto-related business gets an injection of funds just before the end of the year. BTCS is a company that offers transaction verification services and is also invested distributed ledger technologies. The company defines itself as “an early mover in the blockchain and digital currency ecosystems.” The business is the first U.S. pure-play public company focused on Bitcoin and blockchain infrastructure. A pure play company like BTCS allows people to buy shares or an investment in the company itself which uses the capital within its own particular industry. Pure play investment methods have been known to perform well in most cases.

BTCSOne recent move that entailed the company’s capital investments was its merger with Spondoolies. The business, founded in 2013, is a mining hardware firm that creates rigs that harvest cryptocurrencies. Spondoolies-Tech’s machines have been used in the industry in both private and commercial settings with its mining technology. Charles Allen, CEO of BTCS explains this company is an important investment saying:

The successful closing of this round of financing is an important milestone for BTCS. It enabled us to invest an additional $750,000 in Spondoolies-Tech Ltd. (“Spondoolies”), increasing our ownership from 6.6% to 9.6% ahead of our pending merger, and sets the stage for the rollout of their next-generation SP50 servers.”

BTCSBTCS has been laying groundwork all year within the industry with its expansion to a North Carolina facility. The company also had a growth of “2,481% in bitcoins earned for the nine months ended September 2015 compared to the full year 2014”. Allen says the company’s revenues are increasing, and they look forward to the merger with Spondoolies so the business can continue to execute its plans. Guy Corem, chief executive officer of Spondoolies says with the merger they will move forward with its hardware operations. Corem explains:

The new capital we received from BTCS is expected to accelerate our SP50 server rollout. With an estimated 400% efficiency improvement over its predecessor, the SP35, getting the SP50 to market should provide us a strong competitive advantage in 2016,”

BTCSThe capital funds were raised using convertible notes sold as shares. BTCS is fully compliant with United States regulation and has filed for market entry with the Securities Commission. BTCS and Spondoolies plan on continuing its moves this coming year and hopes to increase its revenue again. Both companies are big believers in the cryptocurrency and distributed ledger space and aim to invest into the industry as it moves forward. BTCS says the “blockchain means disruption” and they want to be disruptor building the architecture.

What do you think about BTCS funding and merger with Spondoolies? Let us know in the comments below!


Images courtesy of Shutterstock and Redmemes

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Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.