Investors Continue to Bet on Bitcoin
May 15, 2014
BitPay, an Atlanta-based company that processes bitcoin transactions, on Monday said it had secured a $30 million round of financing. The $32.7 million BitPay has raised since its inception is the most for any bitcoin startup, the company said. The Series A round was led by Index Ventures and will be employed to expand the company’s operations and add around 70 jobs to offices in Atlanta, San Francisco, Buenos Aires, and Amsterdam.
BitPay processes bitcoin transactions for more than 30,000 merchants including WordPress, Tiger Direct and Shopify, more than any other processor. Sir Richard Branson, a participant in the $30 million round, uses BitPay to handle transactions for his commercial space flight venture Virgin Galactic. While recent publicity around Bitcoin has been less than positive, the company, along with many in the payment space and investment community, believe digital currencies will last and solve thorny problems that e-commerce retailers currently face.
“Bitcoin is a borderless and frictionless payment system, which is nearing a tipping-point moment in terms of merchant adoption,” said Tony Gallippi, co-founder and executive chairman of BitPay. “Unlike existing payment technologies such as credit cards, with their high fees and risk of fraud and chargebacks, Bitcoin was designed for the Internet age, offering companies a lower-cost, lower-risk alternative.”