Bitcoin Shop Thinks Bitcoin Price Downturn is Positive, Investing $100,000 in Bitcoin ATMs

Journalist:
Gerrard Hartley
January 23, 2015

Recently, Bitcoin Shop, Inc closed on financings for aggregate proceeds at almost $500,000. Additionally, Bitcoin Shop saw it fit to invest $100,000 more in one of their partners, Coin Outlet.

“This is a great step to encourage the use of digital currencies among consumers who have yet to experience the easy exchange of US dollars to bitcoins.”

“As the lead investor in Coin Outlet, we are pleased to see the installation of Coin Outlet’s ATM at Overstock’s headquarters,” Bitcoin Shop CEO Charles Allen said.

Coin Outlet’s bitcoin ATM at Overstock isn’t the only thing impressive about the company though, as they recently partnered with Locant Services as well. Upon the announcement, Coin Outlet’s CEO Eric Grill thanked Allen for their help to bring bitcoin ATMs to more than 100,000 locations.

Also Read: Overstock to Pass $3 Million USD in Bitcoin Sales in 2014

“The partnership with Locant allows us to drive Bitcoin and digital currency adoption through a systematic roll out of ATMs across key cities from coast to coast. Our partnership encompasses the perfect collaboration of resources, technology, and prime locations.” Grill further commented, “I want to thank Charles Allen, the CEO of Bitcoin Shop for his advice, guidance and support in consummating this partnership.”

Now that they have $100,000 more to put into their company, it will be interesting to see where their drive to make bitcoin ATM’s a hit in the United States takes them.

Bitcoin Shop says that they plan on building a “universal digital currency platform” for users to shop for specific products they want to buy with bitcoin, dogecoin or litecoin. They’re also a publicly traded company with the ticker BTCS. They aggregate product listings from 256 different retailers through their shopping engine, hoping to use their platform as a customer on-ramp for a broader digital currency platform, they said.

Bitcoin Shop Investing in a Market Downturn

The interesting part of the repeat investment in Coin Outlet is the drive behind Bitcoin Shop’s reasoning. Bitcoin has taken a pounding over the last year, dropping from a high of more than $1,000 to a recently newfound low at $150. Obviously bitcoin was once worth nothing, but a year’s time of high prices left scars at the market fell back down.

Allen commented further on the subject of the market’s downturn though, saying that he saw more opportunity in the lowered price.

“We believe the recent decline in the price of Bitcoin has created tremendous opportunities for us to further expand our business and seize opportunities created from the market downturn.”

The downturn over the last few weeks hit many traders hard, as most didn’t believe the bitcoin price would reach such lows. According to a poll on one of CCN’s sister-sites, geared toward daily bitcoin price analysis, 46 percent of members don’t believe the bitcoin market has struck bottom just yet, assuming the decline will resume. 33 percent are currently calling the bottom, and 21 percent are unsure where the market will go from here.

“We have been actively partnering with strategic digital currency companies who have technologies, services or products that are complementary to our business strategy by making investments in them and integrating with them,” Bitcoin Shop said.

Tags: overstock
Gerrard Hartley

Gerrard Hartley is a cryptocurrency enthusiat that frequents the bitcointalk and subreddit communities. He enjoys writing and believes privacy is key in the digital age. Got a tip? Send him an email and let him know: gerrardhartley@gmail.com