Acacia invests $1m in Bitzumi with option on $9m

Patent licensing company Acacia Research Corporation said it entered into a joint venture and services agreement with Bitzumi Inc, a company developing “macro opportunities” in the cryptocurrency and blockchain industries including a next generation decentralized exchange.

Acacia said Bitzumi recently filed a Regulation A Offering statement with the Securities and Exchange Commission and a listing application with NASDAQ.

Acacia said it has completed an initial $1 million equity investment in Bitzumi.

“Under the Joint Venture Agreement, Acacia will provide various patent-related services to Bitzumi and has the option to invest up to an additional $9 million to acquire Bitzumi common stock,” said Acacia.

“Pursuant to Acacia’s initial investment, Acacia received a short-term warrant to purchase $4 million in Bitzumi shares and under the Joint Venture Agreement, Acacia has a right to acquire up to an additional $5 million of Bitzumi shares at a price of $2.50.”

Acacia said its investment in Bitzumi represents Acacia’s first investment into the cryptocurrency and blockchain marketplaces.

Acacia Research president Rob Stewart said: “Acacia looks forward to working with Bitzumi’s management team to implement its blockchain and IP related initiatives.

“Bitzumi is cryptocurrency agnostic and we believe Bitzumi is well positioned to take advantage of the potentially considerable market opportunity in the cryptocurrency and blockchain technology industries.

“We believe technologies like blockchain will be disruptive and be an important part of the technology growth sector.”

James Altucher, co-founder of Bitzumi, said: “As we develop Bitzumi’s decentralized exchange it is important to have a partner like Acacia to help protect and develop an IP related strategy utilizing blockchain technology.”

Scot Cohen, executive chairman and co-founder of Bitzumi, said: “Acacia has been a leader in the patent space for over the past decade, creating one of the largest independent patent portfolios through representation of individual and corporate patent partners.

“Acacia has secured licensing revenue exceeding a billion dollars from licenses with many of the largest companies in the world.

“Partnering with Acacia in the blockchain IP space will allow us to take an early lead and build Bitzumi’s IP position in the blockchain and cryptocurrency industries.”