An online casino accepting Bitcoin currency has been sold for the amount of $11.5 millionA transaction by SatoshiDice has been conducted in Bitcoins in an appropriate way
The first major online gambling company acquisition of a company using the virtual currency Bitcoin has taken place with SatoshiDice, the online casino firm, being sold to an unnamed buyer for $11.5 million or 126,315 Bitcoins, the publication TNW reports.
The betting company buyer remains yet undisclosed. The company was launched in April of 2017 and its revenues are allegedly above the threshold of $50,000 a month.
Featuring a simple lucky dice game, the site allows internet punters to send Bitcoins to the site and then choose a number. The Ghost of Satoshi offers a lucky number and if the number selected proves lower than the one the dice shows, the player is winning.
As reported by TechWeek to date, more than 5.3 million bets have been placed by the site and it has paid out an amount greater than 3.9 million. According to the company the winnings are dispatched to the players within thirty seconds and it only subtracts a small fee from each bet.
SatoshiDice is listed on the MPEX Bitcoin exchange of Romania and is based in Dublin and Panama, where this week it has been revealed by the founder Erik Voorhees that the deal for acquisition forms a premium 277 per cent on its sale price and a premium of 175 per cent on the valuation of the company as stated by MPEX.
This week Voorhees addressed the shareholders, saying:
“While some of the owners of SatoshiDice intended to hold for a period of time, and because of that will not believe their eyes that the buyout took place, I sincerely hope that the level of compensation could be amended. It is much larger than the contract mandates, and is nearly three times as high as what has been paid to all private owners. Negotiating to this level has not been easy, but it is my belief that this is exactly the right thing to do.
“This deal is of great significance as it is the first buy-out of an industry company using Bitcoin currency and points out to the potential money and revenues that is circling in the industry.”
In May US players have been blocked by Satoshi after what the company describes as government coercive threats that motivated the company to use a proactive manner to protect its shareholders’ interests.
This year US authorities have shown close interest in Bitcoin. It included an investigation into the based in Tokyo company Mt. Gox, the biggest Bitcoin exchange in the world. The payments of Dwolla to and from the service were seized by officials in May because of lack of license for money transmitting.