December 8, 2017
There are plenty of reasons to get excited about Bitcoin these days. One is the skyrocketing BTC price, but so is the variety of companies making waves in this industry. BitPay is one of the largest companies active in the Bitcoin world right now. It is currently raising additional capital in order to add support for other cryptocurrencies. It’s a very interesting and somewhat surprising turn of events.
BitPay Plans to Support Altcoins
Most people who have ever dealt with BitPay will acknowledge this company is all about Bitcoin first and foremost. That is not entirely surprising, as Bitcoin has gotten the company most of its business and built its reputation over the past few years. It is the most convenient method of dealing with BTC payments in both an online and offline fashion, even though there are some competitors to keep in mind as well.
However, even BitPay has to acknowledge that cryptocurrency is about so much more than Bitcoin these days. In fact, there are quite a few altcoins which are making a name for themselves. This trend is rather remarkable, considering a lot of people think of altcoins as a test bed for future Bitcoin functionalities. It has become apparent that Bitcoin in its current form is far from perfect, and things have certainly been getting worse as time progresses.
Keeping that in mind, it’s not entirely surprising to see BitPay focus on supporting alternative currencies in the future. Although it is unclear which coins will be supported, it is good to see them branch out regardless. More and more Bitcoin-first companies are working on integrating altcoins as we speak, and payment processors cannot afford to be left behind in this regard. Taking this step will not be easy for BitPay, mind you, as it will need additional capital in order to do so.
This is why the company is currently seeking US$30 million in Series B funding. For now, there is only one entity involved in the process. Aquiline Technology Growth is leading this funding round, but additional investors are uncommitted as of right now. There is a lot of interest in backing this prominent cryptocurrency company, though, which means there should be more than enough support to close out this round in the coming weeks.
It is not the first time we have seen BitPay raise capital to expand its business. More specifically, the company successfully closed a US$30 million Series A funding round back in 2014. At the time, players such as Sir Richard Branson were on board. It is unclear if he will contribute to this round, but it would be good to welcome some new investors as well. With this new round of funding, the company will be able to manage the rapid Bitcoin user growth a lot more effectively than it would otherwise.
No one can deny the cryptocurrency industry is firing on all cylinders right now. More users mean more growth for companies such as BitPay, which is a positive development. It also means there is a growing demand for customer support reps, which is something the company will be focusing on in the coming months as well. Support for the additional currencies and blockchains is what most people are truly interested in, though. The currencies will be selected based upon their market capitalizations and ability to enable payments.
As one would expect, there is already a lot of speculation as to which currencies will be supported in this regard. Bitcoin Cash appears a very likely candidate at this point. Litecoin would be another excellent addition. Ethereum has a solid market cap, but as a currency it’s not exactly cut out to be a payment method. Dash has a decent market cap, but most funds are locked up in masternodes and won’t be used to pay for goods or services. It will be interesting to see what the company decides to do in the coming months.