Cryptocurrency-loving owners of Kogan.com Ltd (ASX: KGN) shares can rejoice as the company looks to dip its toes into the world of crypto.
At the time of writing, the Kogan share price is trading 0.74% higher at $8.15.
Let’s take a closer look at the online retailer and service provider’s foray into the cryptocurrency space.
Kogan shares might soon benefit from crypto trading
On Tuesday, Kogan announced it had reached an arrangement that will see the company gain a boost of around $5 million and a partnership with a crypto exchange.
All that comes at the price of a single domain name.
The company is selling one of its domain names – bitbuy.com – to Bitbuy’s parent company, First Ledger Corp.
The domain will cost First Ledger Corp $US1.5 million (around $2.09 million) in cash.
Additionally, Kogan will receive a warrant entitling it to around $3.04 million (converted from Canadian dollars).
The warrant will be cashed in for either First Ledger equity or cash within a year of transferring the domain name.
Kogan executive director, David Shafer commented on the sale, saying:
The domain sale not only delivers returns for Kogan shareholders but also provides an opportunity to benefit from Bitbuy’s future success in the crypto business abroad and potentially in the Australian market.
According to the company, Bitbuy is one of the most secure and trusted crypto trading platforms in Canada.
It recently became the first marketplace and dealer to be granted approval by the nation’s local security regulators.
Kogan didn’t mention when the crypto trading platform will be looking to launch in Australia.
Right now, Kogan shares are trading for 57% less than they were at the start of 2021. Its share price has also tumbled 10% over the last 30 days.