BTCS hopes to build a fully integrated transaction verification services business using Spondoolies’ state-of-the-art bitcoin mining technology.Both companies believe the anticipated combination of BTCS and Spondoolies will create the world’s first publicly traded company to produce Bitcoin transaction verification equipment and deploy Bitcoin mining resources.
The merger is subject to a number of conditions, including satisfactory completion of diligence and execution of definitive agreements.
Charles Allen, CEO of BTCS, commented on the LOI:
Our key goal in 2014 was to create the partnerships needed to build an ecosystem and start laying the foundation to put our vision into place. Once completed, our merger with Spondoolies would be a significant leap forward in making this ecosystem a reality. We believe this merger once completed would create significant value for BTCS and Spondoolies shareholders, customers, and employees and serve to accelerate the strategic plans in which both companies have invested. As a collective, our next objective will be to complete the development and production of a next generation chip to drive our transaction verification services business and to generate revenue from the combination.
Guy Corem, CEO of Spondoolies, noted:
Over the last several months, we’ve worked closely with Charles Allen and the BTCS team to establish the nature of our potential partnership,” The synergy between the teams is amazing. I have the utmost confidence that together we will build a very successful and prosperous company by growing and expanding our business beyond bitcoin mining equipment.
BTCS is a blockchain technology company that provides transaction verification services for digital currency and is building a universal digital currency platform with the goal of enabling users to engage in the digital currency ecosystem through one point of access. The company operates its public beta site where consumers can purchase products using digital currency such as bitcoin, litecoin and dogecoin, by searching through a selection of over 250,000 items.
Founded in 2013 by a group of Israeli high-tech veterans, Spondoolies is a digital currency hardware manufacturer that has raised #10 million in capital from leading Israeli venture capital firms and assembled a team of leaders from the Israeli Semiconductor industry.