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Arlington, Va.-based Bitcoin Shop, Inc. (OTCQB: BTCS), a bitcoin technology company that engages in transaction verification services, plans to merge with Israeli bitcoin startup Spondoolies-Tech Ltd, a digital currency server manufacturer. The merger is subject to customary closing conditions. The news follows a report that BTCS raised a $2.3 million round from unnamed private investors a few days earlier. BTCS plans to build a fully integrated transaction verification services business using Spondoolies’ state-of-the-art bitcoin mining technology. BTCS share price closed at $0.23 cents on April 28, and has a market capitalization of $35.1 million. In the bitcoin network, transactions are typically verified by operators of specially designed servers which ensure speed, efficiency, security and accuracy. Currently, there are only five companies globally manufacturing these servers and Spondoolies is a leader in the space. Both companies believe their anticipated combination will create the world’s first publicly traded company to produce Bitcoin transaction verification equipment and deploy Bitcoin mining resources. “Our key goal in 2014 was to create the partnerships needed to build an ecosystem and start laying the foundation to put our vision into place,” said Charles Allen, CEO of BTCS. “Once completed, our merger with Spondoolies would be a significant leap forward in making this ecosystem a reality. We believe this merger once completed would create significant value for BTCS and Spondoolies shareholders, customers, and employees and serve to accelerate the strategic plans in which both companies have invested. As a collective, our next objective will be to complete the development and production of a next generation chip to drive our transaction verification services business and to generate revenue from the combination.” “Over the last several months, we’ve worked closely with Charles Allen and the BTCS team to establish the nature of our potential partnership,” said Guy Corem, CEO of Spondoolies. “The synergy between the teams is amazing. I have the utmost confidence that together we will build a very successful and prosperous company by growing and expanding our business beyond bitcoin mining equipment.” [youtube http://www.youtube.com/watch?v=25l3-vhBS9A] BTCS is a blockchain technology company that provides transaction verification services for digital currency. BTCS is building a universal digital currency platform with the goal of enabling users to engage in the digital currency ecosystem through one point of access. BTCS continues to actively partner and integrate with strategic digital currency technology companies who provide products or services that are complementary to its business strategy. BTCS operates its public beta site (www.btcs.com) where consumers can purchase products using digital currency such as bitcoin, litecoin and dogecoin, by searching through a selection of over 250,000 items. [vimeo 89393531 w=441 h=248] Founded in 2013 by a group of Israeli high-tech veterans, Spondoolies is a digital currency hardware manufacturer. Spondoolies raised $10 million from leading Israeli venture capital firms and assembled a team of leaders in the Israeli semiconductor industry. Building bitcoin transaction verifying servers from the bottom up, Spondoolies is producing machines that are designed for efficiency and performance. During 2014, Spondoolies successfully launched five different products.]]>