MoneyGram invests in crypto ATM operator Coinme, buys 4% stake
MoneyGram announced Thursday that it has completed a minority investment in Coinme, a U.S.-based cryptocurrency cash exchange operating through ATMs. MoneyGram’s investment comes after a Series A financing round from Coinme, providing MoneyGram with an approximate 4 per cent ownership stake.
The investment follows a partnership in May 2021 between the companies, in a bid to create a crypto-to-cash model by building infrastructure to connect bitcoin to local fiat currencies, namely ATMs. That partnership created thousands of new physical locations to buy and sell bitcoin, greatly expanding access to the digital asset.
“We continue to be bullish on the vast opportunities that exist in the ever-growing world of cryptocurrency and our ability to operate as a compliant bridge to connect digital assets to local fiat currency,” said Alex Holmes, MoneyGram CEO. “Our investment in Coinme further strengthens our partnership and compliments our shared vision to expand access to digital assets and cryptocurrencies.”
Founded in 2014, Coinme is a cryptocurrency cash exchange partnered with MoneyGram, and coin-cashing machines company, Coinstar, who facilitate the 16,000+ physical locations enabling the cash purchase and sale of bitcoin. Coinme operates in 48 U.S. states, with plans to expand internationally “in the near future”.
“We see this as an incredible opportunity to continue our strong growth and build on our leading presence in the world of crypto,” said Neil Bergquist, Coinme CEO. “With MoneyGram’s global network and infrastructure, both the Company’s continued partnership and strategic investment will help us accelerate our growth and international expansion.”