Tuesday March 3,2015 : MGT CAPITAL AND TERA GROUP TO MERGE
Will form first publicly traded Bitcoin Derivatives Exchange
MGT Capital Investments has entered into a Letter of Intent with Tera Group Inc., the owner of TeraExchange LLC, a Swap Execution Facility regulated by the Commodity Futures Trading Commission.
Subject to regulatory conditions and stockholder approvals, should the merger prove successful the first publicly traded U.S. Bitcoin Derivatives Exchange would be formed.
"Growing consumer and merchant adoption of bitcoin is driving demand for regulated capital markets solutions. By combining with MGT, Tera will create a unique public offering to support the essential infrastructure needed for a vibrant global bitcoin ecosystem," said Christian D. Martin, Chairman, Chief Executive Officer and Co-Founder of Tera.
"The proposed merger with Tera gives immediate and future value to our stockholders, while creating a robust platform for the growth of the industry's first publicly listed bitcoin derivatives exchange," added H. Robert Holmes, Chairman of MGT's board of directors, "The Bitcoin industry attracted over $400 million of investment capital from some of the world's most prominent investors over the past 12 months; we see our move today as further progress in the broader adoption of the industry."