Upcoming blockchain-based digital games retailer has secured a new investor, raising its funding by $3 million.
The investor is Millennium BlockChain, a firm that (as the name suggests) focuses on blockchain and cryptocurrency ventures. As a result of the investment, the company will receive more than 10.5 million IRON tokens, the cryptocurrency Robot Cache will use for all transactions on its marketplace.
Additionally, Millennium BlockChain has issue six million shares of its common stock in exchange for another $3 million worth of IRON tokens, and issues various non-cashless three-year warrants. All of this can bring the company up to $7 million in additional capital if it so chooses.
Finally, Millennium BlockChain has secured a right of first refusal to purchase up to three per cent of Robot Cache's first equity round. Thus far, Robot Cache has yet to raise outside equity capital.
Robot Cache is the new marketplace spearheaded by Brian Fargo. Announced earlier this year, it will use blockchain technology to enable second-hand sales of digital games and promises higher revenue shares for developers and publishers. We spoke to Fargo about his hopes for the venture back in May.
The business will be run by CEO Lee Jacobson, who said of the new investment: "We are well positioned to grow Robot Cache into a decentralized video game distribution platform for the benefit of publishers, developers, and gamers.
"Brandon [Romanek, founder and CEO] and his team at Millennium are the perfect partners to help us realize this vision. Millennium is committed to building a best-in-class portfolio of companies that will seek to redefine their respective industries."