Venture Capital, Pithia, Makes Historical Move By Filing For 13D SEC

Pithia, a Seattle-based blockchain VC has recently announced that is has filed for 13D SEC, which is supposedly the first ever move made by any firm to date. Its compliance with the US Securities and Exchange means that users can now use cryptocurrencies as a mean of payment in exchange for company stocks.

As per rules and regulations, schedule 13D filings should be completed within 10 days of purchasing at most 5% of a company’s securities. This will result in what’s called the “beneficial ownership” – opening doors by distributing voting and investment power.

The announcement made on June 4th suggests that this move was taken due to Pithia’s investment of $2.4 million in the DigitalTown project, one that focuses on building a CityShare platform to offer residents the opportunity to own a stake. Like Pithia’s historical footprint that will set them apart from the rest, DigitalTown is also known for their competitive advantage.

Mainly, DigitalTown is the first public company to accept crypto payments in exchange for company stock. The currency that they will be accepting is RChain’s token called the RHOC.

As for the filing, this is a great opportunity to evaluate the way in which the SEC considers cryptocurrencies as a whole. A particular section, namely, “Source and Amount of Funds or Other Considerations” will list the purchaser and the amount being purchased using RHOC, which in this case is believed to be the Catena Fund One Working Capital.

When the transaction was made, the RHOC investment in DigitalTown amounted to approximately $1.21 million. Now, RHOC value has increased to $1.45 million, which appears to break the notion of volatility that has been highly associated with cryptocurrencies.

Pithia made an announcement which outlined the complete procedure it was part of. In particular, the press release stated that,

“With the inherent volatility of cryptocurrencies, this investment is a strong indicator of the confidence DigitalTown has in RChain, the future success of the network, and the future success of digital currencies in general.”

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