The Green Sheet Online Edition
June 22, 2015 • Issue 15:06:02
Trading cattle futures for bitcoin
Living up to its brand promise of being "a different kind of cattle company," Conexus Cattle Corp. disclosed on May 19, 2015, that it acquired a 51 percent membership interest in Bitcoin Direct LLC, a Nevada limited liability corporation focused on deploying automated bitcoin machines (ABMs) throughout North America.
Conexus agreed to provide up to $300,000 in working capital to Bitcoin Direct, which would be repaid by operational revenue. The agreement gives Bitcoin Direct members the option of repurchasing up to 10 percent of their membership interests over a five-year period. Conexus filed detailed terms of the transaction in its current report to the United States Securities and Exchange Commission.
Bitcoin Direct has an established distribution channel of leading bitcoin miners with an installed base of ABMs in New York City and Montreal. The company expects to expand its North American footprint by building out its integrated bitcoin distribution network and thereby help drive bitcoin adoption as consumers become accustomed to using self-service kiosks to load bitcoins onto mobile devices.
Bitcoin Direct also stated it plans to provide a range of bitcoin products and services, including remittance and gaming, and is actively seeking local operators to install and service a growing population of ABMs, as well as sales channel partners to help grow the network.
"Our strategy is to provide sound, profitable, bitcoin transaction solutions to consumers and to assist a variety of industries as they grow their markets," said Conrad Huss, President of Conexus. He stated that the company plans to take a leadership role in promoting consumer adoption of bitcoin by building a network of automated solutions across North America.
Following the partnership agreement with Conexus, Bitcoin Direct reportedly placed an order for six new ABMs and issued a press release stating its intentions to deploy the machines in major metropolitan areas across the United States and Canada, providing consumers with a way to "instantaneously purchase bitcoins through their mobile devices."
Tellers need not apply
Bitcoin Direct sees automation as playing a key role in bitcoin. Widely available ABMs would facilitate fast and efficient ways for consumers to shop and transact in bitcoin. "An ABM allows consumers to exchange cash and bitcoins without the need for a human to facilitate the transaction," the company stated.
In fact, very few bitcoin transactions directly involve humans. Current available options for purchasing bitcoins include:
- Open a bitcoin wallet: Online bitcoin exchanges will set up online wallets that are linked to consumer credit cards or bank accounts. These wallets hold bitcoins and can be used for e-commerce transactions or peer-to-peer transfers to other bitcoin wallets. Some examples of wallet providers are Coinbase, Circle and Trucoin.
- Trade on a bitcoin exchange: Bitcoin exchanges enable consumers to open an account using traditional or "fiat" currencies and use the funds to buy and sell bitcoins to other users on the exchange. These exchanges operate similarly to traditional stock exchanges, listing the asking prices and bitcoins available for bidding. When buyer and seller agree on a transaction, the exchange will execute the trade by transferring fiat currency to the seller and crediting the buyer's account in bitcoin.
- Over-the-counter trading: Consumers can also transact directly with bitcoin buyers and sellers without using an exchange. A few examples of these marketplaces are the Facebook app Get Bits, and LocalBitcoin.com, a search engine that identifies bitcoin sellers in specific geographic areas.
- Automated bitcoin machines: ABMs represent a fast, easy and relatively affordable way for consumers to convert fiat currencies into bitcoin. Like traditional ATMs, most charge a transaction fee. A map of available ABMs can be found on http://bitcoinatmmap.com.
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