KIRYAT GAT, Israel--(BUSINESS WIRE)--Spondoolies-Tech Ltd (“Spondoolies”), a leading transaction verification server manufacturer, has just released un-audited 2014 revenue for its first year of activity. Founded in August 2013, Spondoolies is backed by two major Israeli VC firms - Genesis Partners (www.genesispartners.com) and BRM (www.brm.com). After launching its first product - Bitcoin transaction verification servers - in March 2014, Spondoolies was able to achieve revenue of over $28m in 2014.
Spondoolies (audited by Deloitte) is working through a full audit process in preparation for its planned merger with Bitcoin Shop, Inc (otcqb: BTCS). Upon the consummation of the planned merger, the joint company will work towards building a fully integrated and highly scalable Bitcoin transaction verification service, also known as Bitcoin mining.
“During our first year of operation, Spondoolies successfully launched five different hardware products which are widely recognized as the best of their respective categories,” said Guy Corem, CEO of Spondoolies. “This tremendous achievement shows what a small, talented, and dedicated team of industry veterans can accomplish. We're very excited about the upcoming merger with BTCS. The new, joint company will leverage the respective expertise of both companies to create a new global leader in Bitcoin transaction verification.”
“Though we've seen a decline in the bitcoin to U.S.D exchange rate, all signs show that Spondoolies is on an upwards trajectory,” said Kobi Levin, COO for Spondoolies. “For instance, we've shipped out more units in December 2014 then we have in April of the same year, which is a strong indicator of our ongoing growth.”
Operating its own servers, Spondoolies is expected to achieve a smoother revenue stream, which will be less affected by short fluctuations in the currency’s exchange rate. Additionally, the company anticipates increased profit margins post-merger.
The transaction verification industry is heavily impacted by electricity consumption and the bitcoin to U.S.D exchange rate. Spondoolies-Tech is currently deep in the development stage of its third generation ASIC. The new ASIC will allow Spondoolies to create units that are significantly more efficient than competitors' offerings. It is anticipated that the 3rd generation ASIC will allow Spondoolies to have a break even return on investment even if market conditions worsen and dive below $100 per BTC.
Founded in 2013 by a group of Israeli high-tech veterans, Spondoolies is a digital currency hardware manufacturer. Spondoolies raised ten million dollars in capital from leading Israeli venture capital firms and assembled a team of leaders in the Israeli Semiconductor industry, with the goal of building the infrastructure on which digital currencies will flourish. Building bitcoin transaction verifying servers from the bottom up, Spondoolies is producing machines that are designed for efficiency and performance. During 2014, Spondoolies successfully launched five different products.