BitPay Purportedly Raises $30 Million from Investors Including Richard Branson in Largest Bitcoin Investment Round Ever

Very, very big news just broke in the Bitcoin space. According to TechCrunch, Bitcoin payment processor Bitpay has just raised $30 million in what would be the largest single round of fundraising ever in the Bitcoin space. It slightly surpasses the prior largest round, announced late last year by the other major Bitcoin payment processor Coinbase for $25 million.

BitPay is a company that is very familiar to readers of this site. It has experienced exponential growth over the past year or so. I most recently highlighted this in my post: BitPay is Now Adding 1,000 New Merchants Per Week.

This round implies a total valuation for BitPay of $160 million and it makes me wonder whether or not it could herald the beginning of another major move higher in the Bitcoin price. All year, I have been saying that I didn’t think the price would move until the summer. With summer less than two months away, I will become much more sensitive to news.

What makes this investment even more exciting is that Richard Branson (and Yahoo co-founder Jerry Yang) is purported to be involved. Considering his company Virgin Galatic has already been accepting bitcoin via BitPay, he is clearly impressed with the company and sees a very bright future for Bitcoin. As do I. This is big.

From TechCrunch:

We’re hearing that BitPay, a platform that processes payments in bitcoin for merchants, is raising the field’s biggest round yet. The company is raising $30 million on a roughly $160 million valuation in a round led by Index Ventures, with Richard Branson and Yahoo co-founder Jerry Yang participating. BitPay declined to comment.

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Another One Bites the Dust: Silent Circle Shuts Down Encrypted Email Service

There are some very high profile people on Silent Circle—and I mean very targeted people—as well as heads of state, human rights groups, reporters, special operations units from many countries. We wanted to be proactive because we knew USG would come after us due to the sheer amount of people who use us—let alone the “highly targeted high profile people.” So to protect everyone and to drive them to use the other three peer to peer products- we made the decision to do this before men on [SIC] suits show up. Now—they are completely shut down—nothing they can get from us or try and force from us- we literally have nothing anywhere.

– Michael Janke, CEO of Silent Circle

The recent big news in the tech world was that Lavabit, the encrypted email service used by Edward Snowden to communicate, was forced to shutdown by the U.S. government. In typical American gulag fashion, Lavabit was not permitted to tell the world about their six week battle with the “authorities” and the specifics related to the shutdown. While some of you may take this development negatively, I would argue it is all just part of the natural process of system change outlined by Gandhi, a master of the process. He said:

First they ignore you, then they laugh at you, then they fight you, then you win.

We are merely in the fight phase. This is thanks to the Edward Snowden leaks, which made the “ignore and ridicule” phase no longer possible. It’s becoming increasingly obvious which side is winning, which is why the establishment is showing such desperation. Even back in June, polls showed that Edward Snowden was far more popular than both Barack Obama and Congress.

More on the Silent Circle drama from ArsTechnica:

Less than 24 hours after Lavabit shuttered its doors, another US firm is shutting down its encrypted e-mail service.

Silent Circle, a company that specializes in encrypted communications, said it is preemptively turning off its Silent Mail product. It’s doing so despite no urging at all from the government—no subpoenas, warrants, security letters, or anything else, company co-founder Jon Callas wrote in a blog post today. “We see the writing on the wall, and we have decided that it is best for us to shut down Silent Mail now.”

Company CEO Michael Janke told TechCrunch that given his user base, he knew the government was going to come after them sooner or later:

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