Bitwage, the pioneer cryptocurrency-based payroll and invoicing company, has raised $1.5 million in its latest funding round. The funding round benefited from the participation of Draper Associates and Max Keiser’s Heisenberg Capital, using Bnktothefuture, a platform designed to make investments online. Bitwage will use these funds to extend its functionalities, now that it is facing competition from Coinbase, which launched a similar service for U.S. citizens.
Bitwage Raises $ 1.5 Million In 55 Hours
Bitwage, one of the pioneering companies in cryptocurrency payroll and billing services, closed a round by raising $ 1.5 million in the process. The round was undertaken using Bnktothefuture, an online platform that allows registered investors to support projects directly. The company achieved its goal in 55 hours and benefited from the participation of Draper Associates and Max Keiser’s Heisenberg Capital.
The funds will be used to further cement the status of the company in the crypto payments service. Bitwage’s CEO Jonathan Chester stated:
When we started in 2014, Bitcoin payroll was just a niche for cypherpunks and crypto-anarchists. The tailwinds are picking up for Bitcoin and cryptocurrency payroll to become a massive multi-billion dollar industry.
Bitwage’s business fueled by Covid-19
The Covid-19 pandemic is said to have played a big role in the expansion and growth that Bitwage is currently experiencing. The conditions were conducive to growing business by 20 times in key Latam markets. Indeed, people have been forced to perform remote work located outside their region, and cryptocurrency has now become a vital part of the lives of these workers.
Bitwage expects these changes in market working trends to keep causing business to grow in the short term. Chester said Covid-19 has acted as a “catalyst” for the remote work and cryptocurrency industries.
But there might be problems ahead for Bitwage, now that Coinbase has announced it will offer a similar set of services for workers, who will now be able to receive part of their salaries (or all of them) in crypto. Coinbase will support payments in over 100 currencies offered by the exchange.
Coinbase claims it is partnering with a number of companies, including Fortress Investment Group, M31 Capital, Nansen, and Superrare Labs, to allow its employees to collect their payments in cryptocurrency. This means that the cryptocurrency based payroll scene will be an interesting market for the foreseeable future.
