Digital currency-based transaction verification company Bitcoin Shop, Inc. has invested $1.5 million in the Bitcoin mining hardware manufacturer Spondoolies-Tech.
The company’s official declaration follows previous month’s announcement that Spondoolies-Tech has signed a letter of intent (LOI) to merge with Bitcoin Shop.
Under the finalized terms, Bitcoin Shop bought a 6.6 percent equity stake in the transaction verification server manufacturer. The combination of the companies will procreate the world’s first publicly traded company involved in the production of Bitcoin transaction verification equipment and providing Bitcoin mining solutions.
BTCS’ Chairman and CEO Charles Allen will head the newly formed company. Charles said on the combination that, “This is a powerful merger as the technologies of the two companies are clearly very complementary and stand to produce immense revenue growth while delivering value to customers, shareholders, and employees.”
Spondoolies CEO Guy Corem commented that, “We believe this new relationship will ensure our ability to continue development and production of innovative and high quality products, targeted mainly for internal use of the merged company but also to deliver the highest quality Bitcoin mining equipment for our transaction verification services.”
Upon closing of the deal, both the parties will equally share the dilution resulting from BTCS’ April 22, 2015 $2.3 million financing.
Spondoolies-Tech is a Kiryat Gat-based transaction verification server manufacturer, founded in 2013 by a group of high-tech Israeli veterans. Spondoolies is involved in the production of highly efficient machinery and has launched five different products in 2014.
The blockchain technology company provides transaction verification services for the digital currencies. Consumers can also spend their virtual currencies, including Bitcoin, Litecoin, and Dogecoin, on a vast collection of more than 250,000 items. The company is in the process of creating a universal digital currency platform to enable users to engage in the respective ecosystem through one point of access.