Bitreserve raises $8m+ Series B via crowd funding

Bitcoin exchangecompany BitreserveInc.,has raised over $8 million and growing through investment crowdfunding platform CrowdCube.

The Charleston, SC.based company headedby CNET founder Hasley Minor offers a Bitcoin currency exchange and payment services.

Thecompany pitches itself asenabling members to escape Bitcoin volatility by holding bitcoin as stable, real-world money, but to still spend their money as Bitcoin.

Bitreserve, similar to competitors BitPay and Coinbase, offersconversion between Bitcoin and currencies including the US dollar. Different to its competitors though is one service it provides, Bitgold, which allows customers to convert their Bitcoin holdings to an electronic gold token, that is secured by actual physical gold in a partnership with Gold Bullion International.

Transparency is also a big part of the push by Bitreserve to stand out from the crowd: it publishes a real timeproof of solvency, enabling anyone at any time to confirm our solvency and ensure that his or her value is safe.

Revenuecomes via the Bitcoin to currency conversion fees,which are charged at 0.45%.

The crowdfunding campaign on British based CrowdCube is seeking to raise GBP 6 million ($9.4m) for a 10.7% stake in the company. At the time of writing the figure stands at5.2 million($8.1m) with 31 days left to run.

The round so far has 68 investors with the largest investment being4,980,204. Investments on CrowdCube can be as little at10 ($15.60) and is open to anyone, with the provision that larger investments can only come from qualified investors.

Bitreserve isnt the first company to raise funds on CrowdCube, but it is the first company in the Bitcoin industry to do so.

Bitreserve previously raised $5 million on a $45 million valuation in March 2014.

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Bitreserve raises $8m+ Series B via crowd funding