not officially announced, the Atlanta-based Bitcoin transaction processor,
BitPay, has managed to secure $US 30 million on a $US 160 million valuation in
a financing round led by venture capital group, Index Ventures along with the
participation of Richard Branson and the co-founder of Yahoo Inc., Jerry Yang.
announcement of the biggest venture-capital investment in digital-currency to
date is expected Tuesday. The given amount
surpasses the $US 26 million recently raised
by Xapo or the $US 25 million series B funding raised
by VC firms, Andreessen Horowitz, Union Square Ventures, and Ribbit Capital,
for San Francisco-based Bitcoin wallet startup, Coinbase.
Branson is no stranger to Bitcoin as his Virgin Galactic company has announced
it will accept Bitcoin as payment for its commercial space flights a few months
ago. Moreover, Branson’s participation in the given financing
round will certainly downplay any accusations
from people labeling Branson’s support of Bitcoin as a simple PR
But not only
can this injection be viewed as another milestone for BitPay, which has
processed over $US 100 million in transactions in the past year and secured
backing from “Asia’s richest man,”
but it’s also indicative that the Bitcoin ecosystem is gaining
steam towards maturation.
are seeing the creation of venture capital funds
and many VC firms entering the crypto-space despite legal and regulatory
setbacks, the Mt. Gox collapse,
hacking attempts, and incessant warnings of government crackdowns.
More and more
VC’s are putting a portion of their chips on Bitcoin as the
potential windfall is becoming harder to resist especially if the nascent
technology is to enter the mainstream and do to money what the internet did to
communication as hailed by many Bitcoin-enthusiasts.
secured over 30,000 merchants across the globe, processing payments for notable
companies such as Zynga, Tesla, Virgin Galactic,
the Sacramento Kings, and opening offices in Amsterdam,
San Francisco, and Buenos Aires.
Gallippi, CEO of BitPay, stated that the money will be used to fund the
company's expansion plans, with a special focus on emerging markets such as
India, where BitPay joins other Bitcoin-related businesses seeking to provide
digital-payment services to countries with large populations of the “unbanked.”
BitPay is the leading Payment Service
Provider (PSP) specializing in e-commerce, brick-and-mortar and B2B solutions
for virtual currencies.
Matthew Slater: “Faster
cheaper payment processing, like most technologies, will not make the world a
better place if all the efficiency gains go to large corporations. To comply
with US law is to give material aid to terrorists. Any payment network that
does not support US state terror must be made illegal. Bitcoin will soon belong
to the ruling classes because every body else is so desperate for their money.
The People cannot have their own payment system and sell it to the elite at the