Tera Group Inc, the operator of the US’s first regulated Bitcoin derivative platform Tera Exchange, recently signed a merger agreement with MGT Capital Investment; thereby adding a crucial step that should make the former a publicly listed company.
According to the available details, both the parties have currently agreed on some “contemplated” terms of the agreement which will reach its conclusion by March 16th, 2015. But as per now, it is definite that Tera will have a major stake in MGT’s common stock shares (at least 70%).
From the look of it, Tera however seems to be disinterested towards interfering in its new partner’s chief operations, related to managing online gaming websites. Instead, the plan here is to meet future demands for regulated capital market solutions, which is expected to go as high as Bitcoin’s consumer and merchant adoption.
“By combining with MGT, Tera will create a unique public offering to support the essential infrastructure needed for a vibrant global bitcoin ecosystem,” said Christian D. Martin, Chairman, Chief Executive Officer and Co-Founder of Tera.
MGT’s Chairman H. Robert Holmes also kept his hopes high from their merge deal, saying that it gives “immediate and future value to their stockholders”. He further supported the idea of Tera to create the US’s first publicly listed Bitcoin derivative platform, citing the enormous investment the industry has received in past 12 months.
“We see our move today as further progress in the broader adoption of the industry,” Holmes concluded.
Once the plan comes into action, the Tera’s ever-expanding swap services will hopefully mend one of the most disturbing ills of Bitcoin market — the price volatility. Traders will be allowed to counteract risks by simply making profits from Bitcoin’s ups and downs in the USD markets. This will also help Bitcoin achieve better adoption and infrastructure in the future.
