Bitcoin Derivatives Platform TeraExchange to Go Public in Merger

MGT Capital Investments has entered into an agreement with Tera Group that would find the operator of the first regulated bitcoin derivatives platform TeraExchange going public on the New York Stock Exchange (NYSE) MKT, the leading equities capital market for small cap companies.

The New Jersey-based company framed the news as that which would open up the NYSE to a bitcoin venture for the first time.

TeraExchange CEO Christian Martin and president and COO Leonard Nuara explained that the company had been looking to enter the capital markets for three months, and that in MGT it was able to find a partner seeking to enter the bitcoin space, as well.

Martin further spoke to the importance of bitcoin for TeraExchange, telling CoinDesk:

“Bitcoin consumes the majority of our mindshare here in our firm. It’s our bitcoin listing and subsequent certification that has the most commercial possibilities for us right now, and it’s a business we’re very keen to cultivate and nurture along.”

Though others have taken similar paths to market, TeraExchange indicated that it believes the move will give both itself and the bitcoin industry greater visibility in the capital markets.

Other public bitcoin companies like Bitcoin Shop trade OTC, while WPCS, the former owners of BTX Trader, and BitGold have traded on the Nasdaq Capital Market Composite or will trade on the Toronto Stock Exchange, respectively.

Once public, Nuara indicated investors would likely see TeraExchange “ramp up” the release of stats and statistics about its marketplace, one that he described as “just getting its legs” following its approval from the CFTC and launch late last year.

The agreement, scheduled to be finalized on 16th March and approved by shareholders, would see MGT issue shares of its common stock to Tera Group representing 70% of the company’s pro forma equity.

Stock visualization via Shutterstock