On Thursday, March 26, 2014 Bitcoin Shop, Inc. announced that it has acquired an additional 2% equity ownership in Coin Outlet, reducing Coin Outlet CEO Eric Grill’s shares by 701,966 while increasing Bitcoin Shop’s to 4.2%.
"Today we are pleased to announce our additional ownership interest in, and partnership with, Coin Outlet,” stated Bitcoin Shop CEO, Charles Allen. “Their ATMs should allow consumers to exchange fiat currency for bitcoins through one fundamental and easy-to-use transaction. Additionally, with the help of Coin Outlet, we plan to leverage their ATM network as another on-ramp to our planned universal digital currency ecosystem."
Now, if Bitcoin Shop chooses to exercise its standing option and warrant in the future, it can own up to 11% of the total equity in the Bitcoin ATM Company.
Bitcoin Shop is the first US Bitcoin company to be traded publicly. Its mission is to build a universal digital currency ecosystem. Coin Outlet manufactures easy-to-use and easy-to-configure Bitcoin ATMs and is working towards building the world’s largest BTM network through a partnership with Locant Services, which gives Coin Outlet exclusive rights to 100,000 high traffic locations across the United States.
Coin Outlet CEO, Eric Grill, commented:
"Together we are focused on driving bitcoin and digital currency adoption through a systematic roll out of ATMs across key cities from coast to coast. The partnership with BTCS encompasses the perfect collaboration of resources and technology."
CoinTelegraph had the opportunity to get an exclusive interview with Bitcoin Shop CEO, Charles Allen to discuss the relationship with partner Coin Outlet, regulatory compliance, and why Bitcoin ATMs are vital for the growth of the crypto economy.
CoinTelegraph: You just announced your increase in Coin Outlet equity to 4.2%. How does this company fit into the Universal Digital Currency Platform you are building at Bitcoin Shop?
Charles Allen: Overtime we believe ATMs are a great on-ramp and access points that will connect the digital currency ecosystem with the traditional Fiat systems. If we can successfully integrate our platform with Coin Outlet, we believe we'll be well positioned to offer a unique value add service to customers.
“Overtime we believe ATMs are a great on-ramp and access points that will connect the digital currency ecosystem with the traditional Fiat systems.”
CT: Of course regulation does guide your investments decisions. How has it in particular influenced your involvement with Coin Outlet so far?
CA: Coin Outlet is registered with FinCen and takes compliance very seriously, which is one of the reasons we were comfortable partnering with and investing in them. We also believe it is one of the reasons both Overstock and Bitpay have selected Coin Outlet ATMs for their headquarters.
CT: Gocoin is part of your platform and it accepts Litecoins and Dogecoin. Are you keen on seeing CoinOutlet ATMs transacting altcoins as well?
CA: At this time, Bitcoin is our core focus.
CT: Is it fair to state that when it comes to e-commerce, cryptocurrency payment solutions are at the same level with shopping cards in Africa and much of the rest of the developing world. Does Bitcoin Shop see an opportunity there?
CA: E-commerce in the U.S. is extremely competitive, and we believe over the long run international e-commerce will open markets in the developing world. We plan to expand our platform to allow for international sales.
CT: Do you believe bitcoin price volatility can hold back the growth of a Bitcoin ATM network within the wider ecosystem?
CA: Given purchases are instant on ATMs compared to online exchanges we believe Bitcoin ATM networks should be less susceptible to lagging growth due to bitcoin price volatility.
CT: When can we expect the next change of your equity in CoinOutlet?
CA: No comment - We don't provide forward-looking statements or guidance at this juncture.
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"Today we are pleased to announce our additional ownership interest in, and partnership with, Coin Outlet,” stated Bitcoin Shop CEO, Charles Allen. “Their ATMs should allow consumers to exchange fiat currency for bitcoins through one fundamental and easy-to-use transaction. […]