Bitcoin Shop, Inc. (OTCQB: BTCS) (the "Company"), the virtual currency ecommerce marketplace bitcoinshop.us, today announced a strategic investment in leading digital currency payment platform, GoCoin, LLC.
The $1.5 million Series A equity financing was led by the Company, Chief Executive Officer Charles Allen, the Company's Chief Operating Officer and Chairman Michal Handerhan, former Facebook COO, Owen Van Natta, and Crypto Currency Partners amongst others.
Charles Allen, CEO of Bitcoin Shop, commented, "Bitcoin Shop is an ecommerce platform that delivers a seamless digital currency shopping experience for its customers. Our investment in GoCoin's leading international payment processing platform is complementary to our business model. The partnership diversifies our risk profile through access to a greater number of retailers who accept digital currencies with GoCoin. Together, we are enabling customers the ability to use the growing number of virtual currencies when shopping on our site by leveraging GoCoin's enhanced payment platform. Once fully integrated, we will offer a best of breed, one-stop-shop user experience. We are excited to be leading this round of investment in GoCoin and their team."
GoCoin is the only payment platform designed to be currency-agnostic, processing bitcoin, litecoin and dogecoin. GoCoin will use the proceeds for additional engineering resources and to ramp up its global sales force. The Series A financing includes over $500,000 of converting promissory notes from angel investors including Owen Van Natta (Facebook, Amazon), Andrew Frame (Ooma), David Neuman (Current TV, CNN), and more.
Bitcoin Shop will be leveraging GoCoin exclusively for its payment processing solution to offer shoppers the option to pay using bitcoin and litecoin. Bitcoin Shop offers litecoin holders the largest selection of products worldwide where shoppers can pay using litecoin.
"User demand continues to grow for alternative payments," said Owen Van Natta. "I'm excited to deepen my involvement with GoCoin and their best-in-class payments solution for merchants and game publishers."
"We've had an international multi-currency focus since day one, and this investment will help extend our global footprint and take our services to the next level," said Steve Beauregard, founder and CEO of GoCoin.
As part of the agreement and to further increase the benefits to the Company, Charles Allen and Michal Handerhan irrevocably assigned to Bitcoin Shop their respective participation rights in the next financing round. Bitcoin Shop is therefore entitled to its participation right in addition to Charles' and Michal's participation rights in GoCoin's next financing round.