New York Digital Investment Group (NYDIG), a Bitcoin (BTC-related) investment firm, announced the acquisition by Bottlepay, a UK-based micropayments service, for an estimated fee of between $280 million to $300 million.
NYDIG participated in the February $15.4 million seed financing round. This raise was spearheaded by British billionaire investor Alan Howard. The company was valued at more than $50 million.
Bottlepay’s mobile app service uses the Bitcoin Lightning Network to allow users in the U.K., Europe, and elsewhere to send small amounts of Bitcoin or traditional fiat currencies like the euro and pound sterling.
After previous integrations with Reddit and Discord, the digital app announced that it had integrated Bitcoin payments into Twitter. Account holders can send the asset using the simple tweet format: “@bottlepay send 1000 sats @twitteruser.”
Pete Cheyne, founder of Bottlepay, expressed optimism about the future prospects for the payments service after NYDIG’s acquisition:
“When we started Bottlepay, our goal was to create the financial infrastructure of tomorrow. We are excited to join NYDIG, an industry leader who shares our vision of the future money.
Related: NYDIG raises $100 Million and launches a ‘Bitcoin powered’ insurance initiative
Bottlepay shut down operations in late 2019, following the introduction in the European Union of Anti-Money Laundering Regulations. Block Matrix, the U.K.-based developer of Bottlepay, stated that this stringent legislation was threatening the privacy and identity of the community. Therefore, they declined to pursue the project.
Bottlepay, following this saga, restructured its core infrastructure for its Bitcoin wallet in order to comply with the 5th Anti-Money Laundering Directive of the European Union. This directive is an initiative to improve transparency in digital transactions across Europe.
Robert Gutmann, the cofounder and executive chairman at NYDIG, made a joint statement about the regulatory credibility that they saw within the Bottlepay service.
“Bottlepay has created a world-class infrastructure for Lightning payments and bitcoin payments. They have also done it with the same regulatory and compliance rigor as NYDIG’s customers today. NYDIG’s mission is to make bitcoin accessible to everyone, and this acquisition will help us get one step closer to that goal.