Bitcoin Mining Giant Bitmain Invests $1.6 Million in Shenzen-Based Bitcoin Trading Platform BitKan

Beijing-based Bitcoin mining giant
Bitmain

announced last week that it has invested $1.6 million in
BitKan

, a Bitcoin data and trading services provider.

According to the company, Bitmain is the sole investor in the
Series A funding round after the angel round investment from Lanqi
Venture Capital Investment last November.

Based in Shenzen, BitKan initially offered aggregated Bitcoin
news and allowed traders to buy and sell coins using its partner
exchanges
BTCChina

,
Yunbi

and
Bter,

but the company recently started offering over-the-counter (OTC)
Bitcoin trading services.

Speaking to
Bitcoin Magazine,

Sharif Allayarov, sales and marketing manager for Bitmain, said
that Bitmain and BitKan were already cooperating in areas such as
advertisement and promotion of Bitmain products, and the company
decided to invest in BitKan to help expand its over-the-counter
Bitcoin trading services.

“We decided to invest in BitKan to help expand its OTC (Over the
Counter) business.” Allayaov said. “It is a very attractive
business that will provide a platform for people all over the world
to trade bitcoin, especially to those living in non-mature bitcoin
markets such Africa, South America, and India.”

Founded by former employees of China-based IT giant Huawei and
launched in October 2013 , BitKan
attracted an undisclosed “multi-million” yuan

 (1 million Chinese yuan is equivalent to $157,000 USD) in
angel funding from Lanqi Venture Capital.

Revealing the company’s future plans after the angel funding
round,
BitKan

CEO Liu Yang told
CoinDesk

that the company aims to expand to the United States and focus on
non-BTC areas to maintain flexibility.

We will register a company in the U.S. as the first step of our
globalization strategy. This is the reason that we need investment.
We will plan to expand into non-BTC areas to maintain maximum
flexibility facing uncertain market condition, but we believe that
the soundness of our plans eventually show if we continue to focus
on creating values for our customers,”

Yang
told
CoinDesk

.

As for
Bitmain

, the company manufactures Bitcoin mining hardware and also
operates
Antpool

, the world’s largest Bitcoin mining pool with 28 percent of the
network’s hashrate.

Following its participation in a February funding round of
Israeli payments service
Simplex

and smart contracts platform
Rootstock

in March, this month’s investment in BitKan reflects Bitmain’s
growing interest in investing its funds in the wider Bitcoin
ecosystem.

mm

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