GreenBank Capital Soars On Launch Of Two New Bitcoin-Investing Companies

Published on Tuesday, December 17, 2013 at 12:04pm

GreenBank Capital (CNSX:GBC) shares more than doubled in value on Tuesday after launching two new subsidiaries designed to invest in bitcoin, the digital crypto-currency, and bitcoin startups.

The company said Bitcoin Canada Investments will invest exclusively in the currency, which is created and held electronically, with no single institution controlling the bitcoin network. Meanwhile, Bitcoin Angel Capital will seek to invest in early-stage bitcoin and other crypto-currency-focused companies.

“I believe that Bitcoin is in the early stages of becoming a revolutionary payment medium, and GreenBank intends to be actively involved as a Bitcoin incubator and investor,” said GreenBank CEO Danny Wettreich.

The currency has been falling of late as the asset faces more obstacles from Chinese regulators. The price of bitcoin reached more than $1,200 earlier this month, but at the time of writing, was trading at about $722, following reports that officials at the central bank of China told third-party payment processors to stop working with bitcoin exchanges.

Wettreich said he is planning to raise up to $5 million through a private placement of debentures to secure funds for the new subsidiaries. The debentures will be convertible into 90% of Bitcoin Canada and Bitcoin Angel common shares.

The corporate finance firm has already entered into management agreements with both companies to manage the bitcoin investment portfolio, it said, for a fee equal to 10% of the portfolio appreciation.

Management is also planning to spin off a portion of both these subsidiaries to GreenBank shareholders, and apply to list the new entities on the Canadian National Stock Exchange.

Shares of GreenBank jumped 150% to 15 Canadian cents Tuesday afternoon.

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