Dallas-based Money International Inc. is taking a minority stake in Coinme, a cryptocurrency platform that converts cash into bitcoin.
MoneyGram didn’t disclose the size of its investment, which it estimated gives it a 4% ownership stake in the Seattle-based startup. It indicated that its investment closes Coinme’s Series A financing round.
In a June regulatory filing, Coinme said it had raised about $10 million from existing investors in a funding round intended to bring in $15 million in capital. That brought the company’s investment total to $19.1 million since its founding in 2014, according to tracking site Crunchbase.
MoneyGram, best known for its wire transfer business, first partnered with Coinme in May 2021. That partnership let customers buy or sell bitcoin with cash at more than 12,000 brick-and-mortar locations across the U.S.
Customers pay fees varying from $2.75 to $5.75 per transaction.
“At MoneyGram, 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 chairman and CEO Alex Holmes in a statement.
Holmes said MoneyGram’s cash-to-bitcoin offering with Coinme opened its business to “a new customer segment, and we couldn’t be more pleased with our progress.” It’s part of MoneyGram’s strategy to become a digital leader in the payments industry.
“As we accelerate our innovation efforts, partnerships with startups like Coinme will further our position as the industry leader in the utilization of blockchain and similar technologies,” Holmes said.
MoneyGram and Coinme said the companies have additional initiatives in the pipeline. At the time of its initial partnership, the companies said they intended to expand to international markets after the initial U.S. push.
Coinme operates in 48 states, earning a place on the Deloitte Technology Fast 500 list for 2021 as the 78th fastest growing technology company in North America. The company has built a cryptocurrency exchange network that includes ATMs and Coinstar kiosks.