Bitzumi, a digital content and asset platform that expects to allow users to transact cryptocurrency and blockchain marketplace, has launched a Reg A+ crowdfunding round today. By using the Reg A+ securities exemption, any investor may participate in the funding round.
Bitzumi is co-founded by James Altucher along with Scot Cohen, a Wall Street veteran. Altucher said they anticipate to be the “next seismic shift in the way all business is conducted.”
According to the Offering Circular, Bitzumi seeks to raise $10 million by selling 4 million shares in the company at $2.50 per share. Bitzumi expects to have over 115 million shares outstanding following the offer thus giving the startup a post money valuation of over $287 million. Following the funding round, Bitzumi intends to list its shares on NASDAQ.
Bitzumi said it has entered into a joint venture transaction with Acacia Research Corporation (NASDAQ: ACTG), which included an initial $1 million equity investment in Bitzumi. Under the Agreement, Acacia will provide various patent-related services to Bitzumi and has the option to invest up to an additional $9 million to acquire Bitzumi common stock.
As part of the deal, Acacia received a short-term warrant to purchase $4 million in Bitzumi shares and under the Joint Venture Agreement, Acacia has a right to acquire up to an additional $5 million of Bitzumi shares at a price of $2.50.
Bitzumi explains its mission to “own the industry’s high-intent search traffic by becoming the largest gatekeeper of quality cryptocurrency and blockchain-related content and products.” The ultimate goal is to provide a cryptocurrency exchange, digital wallet and associated educational products.
“It is a unique time to invest in the crypto and blockchain business,” said Bitzumi founder and executive chairman, Scot Cohen. “We see the trend in global trading volume and search traffic relating to cryptocurrency and blockchain continuing. Bitzumi does not bet on any one cryptocurrency but rather on the growth of the industry.”
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