The money transmission network, MoneyGram, now has a minority investment in cryptocurrency ATM operator Coinme, following a round of Series A funding.
In a Wednesday ad, MoneyGram said it had bought about a 4% stake in Coinme – likely more than $ 764,000, given its valuation of $ 19.1 million in June – as part of a strategic investment in the cryptocurrency company. The investment comes after a May 2021 partnership between the two companies, which aims to expand access to cryptocurrency exchanges.
“We remain optimistic about the vast opportunities that exist in the ever-growing world of cryptocurrencies and our ability to operate as a qualifying bridge to connect digital assets with local fiat currency,” said the CEO of MoneyGram, Alex Holmes. “Our investment in Coinme further strengthens our partnership and complements our shared vision of expanding access to digital assets and cryptocurrencies.”
Currently, US-based MoneyGram users can exchange their holdings of Bitcoin (BTC) and cryptocurrencies for cash at points of sale. The website of Coinme reports that there are more than 23,000 ATMs in the United States, including those from MoneyGram and Coinstar.
While MoneyGram appears to be ending its partnership with Coinme, which currently only operates in the United States, it scaled back its collaboration with blockchain-based payments company Ripple Labs in 2021. The two firms signed a strategic partnership agreement in 2019, processing billions of dollars through Ripple’s RippleNet and On-Demand Liquidity services. However, MoneyGram suspended the association in February 2021 after the United States Securities and Exchange Commission filed a complaint against Ripple, alleging securities violations.
At the time of publication of this note, MoneyGram (MGI) shares are trading at USD 7.55, having fallen approximately 2.5% in the last 24 hours.