An Australian Bitcoin trading startup has secured $815,000 in a series A round it says was oversubscribed by double the original target amount.
Melbourne-based Bitcoin.com.au allows everyday Australians to buy and sell Bitcoins — including the ability to have cash handed over at more than 1,200 physical locations including Commonwealth Bank and Westpac branches, and selected newsagents.
Business Insider understands the startup was seeking $500,000 for the round, but ended up having more than $1 million offered to it for overseas expansion and diversification into different types of cryptocurrencies.
Bitcoin.com.au was formed in 2015 and charges a 5% fee on the spot rate to generate revenue.
Sydney’s Alium Capital — which contributed to three of the biggest startup investment rounds this year in Unlockd ($30.8 million), HealthEngine ($26.7 million), and Nitro ($US15 million) — was a major investor for Bitcoin.com.au’s series A, along with Dominet Venture Partners.
Bitcoin’s price has gone from about $US1000 at the start of January to now $US2750 as it has snowballed in popularity during the year. Other blockchain currencies Ethereum and Ripple have also seen their values surge.
Alium Capital partner Rajeev Gupta said his fund had been looking for a way to invest in the growth in decentralised currencies.
“Consumers, [small businesses] and enterprises are in the midst of a transformation in digital asset value, storage and payments with the advent of cryptocurrencies,” said Gupta.
“We believe [founder and chief Rupert Hackett] and the team at Bitcoin.com.au provide a platform that is a pure play twenty-first century asset class for digital cryptocurrencies in Australia.”
Hackett said the new capital would be used to accelerate international expansion at its existing businesses in the UK and Canada, and to add other cryptocurrencies like Ethereum and Ripple to the platform.
“Currently more than $8.5 billion is transferred using Bitcoin globally every 24 hours – and with scaling solutions now resolved, Bitcoin is poised to be the fastest, lowest cost and most secure form of currency ever created.”
Digital currency is still “a challenging subject”, said Hackett, but his company provides a “trusted retail environment” to make the market more accessible to everyday people.
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