Payments processor BitPay announced today it has signed a multi-year deal with fellow big player Bitmain Technologies. The deal will see BitPay develop open source blockchain-securing software for miners, mining pools and full node operators.
Neither firm released details of exactly how much the deal is worth, though BitPay’s post on Medium described it as a “multi-million dollar development agreement”.
BitPay CEO Stephen Pair said:
“We recognize that there is an untapped market of mining companies that require more advanced platforms for their businesses than are available today … and we believe that miners and mining technology providers like Bitmain play a vital role in the security and ongoing success of the Bitcoin blockchain.”
Bitmain CEO Jihan Wu described BitPay as “a leader in open source development” for Bitcoin. “We can make real improvements in how we secure blockchain transactions and grow the impact of blockchain technology in digital payments.”
BitPay to Shine Again With Software Deal?
Founded in 2011, BitPay was once one of the most prominent names in Bitcoin. However it fell from grace somewhat after sponsoring the first (and only) “Bitcoin Bowl” game in 2014 — and when former CEO Tony Gallippi lost $1.8 million USD in an unfortunate 2015 phishing incident.
It was also unfortunate to be the dominant bitcoin payment processor at a time when the bitcoin price was on a lengthy downward trend. Rumors of low morale at the company were frequent.
However Bitcoin’s current record price and a new deal could see BitPay regain its place in the crypto firmament. It’s still near-ubiquitous on e-commerce sites accepting bitcoin payments, and no-one has ever questioned the software’s capabilities.
The company has offices on three continents and has raised over $32 million USD in venture funding so far. Its list of investors include Richard Branson and Peter Thiel.
This deal will expand its software ubiquity even further. Bitmain is the world’s largest manufacturer of ASIC mining equipment, with customers and users in over 100 countries.
What do you expect from this deal? Let us know in the comments.
Images via Bitmain, BitPay