US blockchain firm BTCS has signed a non-binding letter of intent (LOI) to merge with Australian blockchain company Blockchain Global Limited (BCG).
Sam Lee, CEO of BCG, said, “As early movers in a rapidly developing industry, we have assembled a talented team with the necessary expertise to excel. In addition to our work with innovative companies through the Melbourne Blockchain Center, we have also positioned ourselves to be a leading consultant in the space, servicing companies that recognise the importance of incorporating blockchain technology into their organizational strategies. By teaming up with BTCS, we are deepening our pool of talent.”
BCG operates four distinct business lines, an institutional exchange platform, transaction verification services (bitcoin mining), a blockchain start-up accelerator, and a blockchain technology consultancy. Its revenues increased 300% y/y to approximately $4.4 million in FY2016.
The merger intent will be subject to a number of conditions, including the approval of BCG’s shareholders and board and the approval of BTCS’s board, and the settlement of all of BTCS’ debt prior to closing. The LOI is also subject to the execution of a definitive agreement which the parties agreed to execute within 30 days following the company receiving the audited financial statements of BCG, audited in accordance with GAAP by an auditor registered with the Public Company Accounting Oversight Board.