Bitcoin Switzerland announced a round of Series A financing at a pre-monetary valuation of CHF 275 million (~ USD 283 million). The company reports commitments of around CHF 20 million from “friends and family”. The financing cycle is led by Roger Studer, Swiss banker and former director of Vontobel Investment Bank (SIX: VONN), and the Studer Family Office.
Founded in 2013, Bitcoin Switzerland is one of the first entrants in the crypto and blockchain sector in Switzerland. The company is a regulated Swiss financial intermediary that is in the process of being licensed to operate as a Swiss bank. Currently, Bitcoin Switzerland operates a trading, prime brokerage, custody, loan, staking, tokenization and other crypto-financial services for individuals and institutions.
Switzerland has become a jurisdiction that respects cryptography and is home to many blockchain-based companies. Policy makers and regulators have sought to encourage robust but consistent development of this Fintech sector.
According to Bitcoin Switzerland, a total of 20% of the shares of BTCS Holding AG, the holding company owning and controlling all of Bitcoin Switzerland’s subsidiaries, with full voting and dividend rights, are offered to qualified, accredited and professional investors. The share issue represents 10% of treasury shares and 10% of newly issued shares. If the offer is oversubscribed.
Bitcoin Switzerland currently generates around CHF 1.8 million in turnover per month. In 2018, the company reported net profit of CHF 25 million.
The additional capital will help fuel cross-border licensing efforts.
The offer will start on May 11 and should continue until mid-June 2020. The minimum ticket size is CHF 250,000.
Studer says that Bitcoin Switzerland has a high quality offer, based on a proven and solid company with cutting-edge technology, and is positioning itself as a market leader in the Swiss crypto-financial space, fast growing.
“For these reasons, the Studer Family Office is very happy and happy to participate in the A series offer.”
Bitcoin Switzerland CEO Dr Arthur Vayloyan said that when Bitcoin Switzerland becomes a Swiss banking company, equity above CHF 100 million will provide a solid balance sheet.
“The series A cycle opens the way to speed up and significantly increase Bitcoin Switzerland’s business volume and profitability. It’s the right decision for the company, and it’s a great opportunity for investors to join an extraordinary journey. ”
The founder and chairman of the board of Bitcoin Switzerland, Niklas Nikolajsen, explained that Bitcoin Switzerland is the work of his life, and this series A is their very first capital increase.
“With the CHF 54 million in business capital raised through many years of retained earnings, we have come a long way. But for the future, we may face limitations on the speed of our growth, as we see strong demand for secured loans, liquidity reserves – and an ever-increasing need to secure our customer deposits on sale through Swiss bank guarantees. With Series A and the capital raised, we will be able to continue our exponential growth, as well as develop with cross-border licenses. “
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