Last updated on May 18th, 2015 at 01:20 pm
Spondoolies-Tech, a Bitcoin ASIC miner manufacturer, has received $1.5 Million U.S. Dollars in funding from BTCS (Bitcoin Technology Consumer Solutions).
This investment is the first step in an upcoming merger between Spondoolies-Tech and BTCS, which will become the first publicly traded company to produce low cost Bitcoin ASIC miners. This investment by BTCS in Spondoolies-Tech is a purchase of a 6.6 equity interest in Spondoolies-Tech. BTCS will also receive exclusivity rights and pricing for current and future Spondoolies products as well as a $1 million breakup fee should the merger not be accomplished.
Upon closing the merger, the parties will equally share the dilution resulting from BTCS’ April 22, 2015 financing. Charles Allen will be the entity’s CEO and chairman, and Guy Corem, current Spondoolies-Tech CEO and co-founder, will serve as a board member and executive officer. Yuval Rozen will be the BTCS CFO.
They have also publicly stated their views on the upcoming merger.
“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,” said Allen.
“We are excited to begin our partnership with BTCS and appreciate their support during a transformative part of our company’s growth,” said Corem. “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 for our transaction verification services.”
Spondoolies-Tech is a developer of bitcoin transaction verification servers (Bitcoin ASIC miners) which is based in Kiryat Gat, Israel. It was founded in 2013, and it has shipped thousands of miners to customers worldwide in the last year. It is also one of the new Bitcoin ASIC manufacturers that actually delivered their products and satisfied their customers, unlike some others.
About BTCS (Bitcoin Technology Customer Solutions)
BTCS is a relatively new company in the bitcoin space, which provides services such as an eCommerce store, a multisig bitcoin wallet, cloud mining services and bitcoin ATMs. It is also a publicly traded US Company. They previously have also invested and partnered with other bitcoin companies: GoCoin, Gem, Expresscoin, and Coin Outlet.