The reverse merger has become a popular method for the purpose going public in a significantly shorter period of time. Bitcoin Shop Inc. is one of the
latest companies to utilize a reverse merger to jump start the process of going public. They were able to raise $1.875 million by employing a private
placement. According to the SEC Bitcoin Shop's private placement had 3.75 million units priced at 50 cents each. Reportedly their shares have more
than doubled in value.
Bitcoin Shop is an online retailer who accepts
payment using the virtual currency known as bitcoin.
Although controversial, bitcoin has endured the highs
and lows that are due in part to the fact its value is
widely speculative. However bitcoin looks to be moving
into the mainstream. The Bitcoin Shop is one of the
first companies that accepts bitcoins to become a
public company and is the first one with the actual
word bitcoin in its name. Bitcoin Shop has over 140,000
products for sale online, all with the interesting
twist that each product price is represented not in dollars
but as fractions of the bitcoin.
Now that Bitcoin shop has gone public
their company worth has automatically increased,
they now have nearly $2 million of new capital to invest
in their company growth and they are already in the market
ahead of their competitors. "The bitcoin ecosystem is moving
so quickly” said CEO/CFO Charles Allen, “so when we saw the
opportunity to capture the funding we needed to really get
into business we jumped on it."
reverse merger can be a powerful strategic alternative to
going public by a standard registration. As part of an overall
game plan it allows a private company to become a public company
in an accelerated manner and start the capital raising process
as soon as possible.