A Bitcoin Shop goes public through a reverse merger process
The CFO and CEO of the Bitcoin shop recently discussed the reason why company went through the process of reverse merger. According to him this process was the best way for his company to get known among the people. Some of the reasons that he mentioned were transparency, publicity by being public, capacity to raise funds, time to market, etc. Generally reverse mergers can tend to be a bad idea but no one can predict what can happen as Bitcoin’s shop has had fair amount of success and disclosed all its financial statements.
Private companies use different techniques to reach out to the public and act as a public company. They try to navigate through the process and have good systems set up for successful transition required in this process. But there are very few private companies who opt for this process and the process of transition rarely materializes. But one must give the credit to Bitcoin’s shop as it has been able to raise around $1.8 million through their private placement and all this took place through their reverse merger. Mr. Allen said that the Bitcoin shop is basically an affiliate shop that sells product for other sites. They list the products and then permit the payment method through Bitcoin. They have a goal to become one of the biggest virtual currency market and not a company under Bitcoin. It is currently just a single vendor but the shop plans to do more and get global recognition.
The Bitcoin gains nice revenue through product markups, undercut credit, fees for debit card processing and other processing fees. One needs to wait and watch if this can prove to be a viable option and there are many technical discussions that are still left to be considered.
Source: Thats Not Market