The publicly traded bitcoin miner BTCS is moving toward a new merger, public records reveal.
New filings with the US Securities and Exchange Commission (SEC) show that BTCS has signed a non-binding letter of intent with Blockchain Global Limited. Blockchain Global, according to the filings, operates a bitcoin mine out of China and also runs an Australian bitcoin exchange called AXC.io.
The firm also invests in other companies in the bitcoin and blockchain space, perhaps most notably the publicly-traded DigitalX. Earlier this year, Blockchain Global notably invested in DigitalX through a convertible loan denominated in bitcoin.
The merger effort is the second for BTCS, which moved to merge with bitcoin miner Spondoolies-Tech back in 2015. Yet despite being cleared by a key regulator in Israel, where Spondoolies was based, the deal ultimately fell apart after an Israeli court dissolved the firm amid financial problems.
It also comes as BTCS looks to shore up its financial position, having raised $1 million earlier this year in a bid to stem the tide of losses. Issues aside, representatives for both BTCS and Blockchain Global struck positive notes in statements announcing the deal.
"The blockchain space continues to suffer from a talent void. Together with BCG, and their track record of success, we’re positioning ourselves to fill this talent void, ultimately capitalizing on the immense opportunity in blockchain technologies and leveraging our early-mover advantage," Charles Allen, CEO of BTCS, said of the planned merger.
