Published on December 17, 2013 at 12:45 GMT
By: Nermin Hajdarbegovic
Canada’s GreenBank Capital has launched two new subsidiaries to invest in bitcoin startups and cryptocurrency in general.
The investment firm claims to be the first public company with a presence in bitcoin, thanks to its new subsidiaries: Bitcoin Canada Investments Inc and Bitcoin Angel Capital.
Bitcoin Canada will invest exclusively in bitcoin, while Bitcoin Angel will invest in early-stage projects in bitcoin as well as other cryptocurrencies. GreenBank plans to spin-off both companies at a later date, listing their shares publicly on the Canadian Stock Exchange.
GreenBank will maintain a hands-on approach, managing the bitcoin investment portfolio in both subsidiaries for a 10% fee of portfolio appreciation. The company said in a statement:
“GreenBank intends to make a private placement to accredited investors of up to $5,000,000 Debentures with conversion rights into 90% of the common shares of Bitcoin Canada and Bitcoin Angel.”
GreenBank hopes the move will allow investors to gain more exposure to bitcoin and other cryptocurrencies. Danny Wettreich, CEO of GreenBank, Bitcoin Canada and Bitcoin Angel, said:
“Bitcoin is a digital cryptocurrency that is not issued by any government, bank or central organization. During 2013, the market price of Bitcoin has increased dramatically, and increasing acceptance and popularity will make it a viable alternative to fiat currencies.” He added:
“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.”
GreenBank has a long tradition of focusing on investments in Canadian small cap companies. It also facilitates the listing of private companies on the Canadian Stock Exchange, arranges acquisitions and mergers, and invests in equity.