“Crypto genius” James Altucher is back, and he’s got big plans.
Altucher, the so-called “face of Bitcoin,” and his company, Bitzumi, are seeking to raise $10 million to launch a full-service blockchain startup that will, among other things, feature a cryptocurrency exchange.
That figure might not seem like that much, but as the SEC filing indicates, it would provide the company with an initial valuation of $280 million. If those shares become fully-diluted later on, that would raise Bitzumi’s valuation to $750 million.
That’s not too shabby for a company that currently has one full-time and four part-time employees and subleases a $500 per month office in New York City.
For reference, Coinbase — an industry giant that raked in more than $1 billion in revenue last year and has hundreds of employees — was most recently valued at $1.6 billion.
Bitzumi aims to raise these funds through a Regulation A+ public offering, a “mini-IPO” that allows startups to raise a limited amount of capital from the general public as well as accredited investors.
According to the filing, the company will also launch a USD-denominated cryptocurrency exchange that supports Bitcoin, Litecoin, and Ethereum trading:
“We anticipate Bitzumi will be a cryptocurrency exchange that we expect to provide a reliable and secure way to buy, sell, store, and trade to and from the following fiat and digital currencies: US dollars, Bitcoin, Litecoin, and Ethereum We expect Bitzumi to provide 24/7 access to customers’ digital wallets as well as liquidity into USD through integration with customer debit cards.”
The company said that it intends to differentiate itself from its competition by offering increased security, customer support, liquidity, and trading tools, although it did not go into detail about how it will achieve these lofty goals.
“We are still in the research and development phase of this product,” Bitzumi added.
The company plans to attract customers through an aggressive marketing campaign, continuing a practice that Altucher has used extensively to promote his $2,000-per-year cryptocurrency investing newsletter.
The filing also said that Bitzumi has entered into a joint venture with patent licensing firm Acacia Research to develop a blockchain-based solution for registering and enforcing intellectual property rights.
Finally, the company intends to develop a division called “Bitzumi Coins,” which sounds like an ICO incubator, as the company says its purpose will be to create “special purpose coins for particular industries.”
Featured image from Shutterstock.
Last modified: May 20, 2020 9:05 PM UTC