Kim Dotcom, the founder of the original Megaupload and Mega.co.nz, had planned a big announcement for January 19, which is the fifth anniversary of the day his mansion was raided by NZ police. Due to tweets of an “expected hiccup,” the release of his “big news” about Bitcache and Megaupload 2.0 was delayed.
Kim recently took to twitter to detail why his fifth-anniversary announcement didn’t go as planned. He released a statement by sharing an image of text, which read:
After filling its first capital round successfully Bitcache looked at raising a second tranche of startup funding in what would have been a stock and cash merger deal with a Canadian publicly listed company valuing Bitcache at $100m and providing $12m in additional capital. The company submitted a draft press release announcing an intended merger to its Exchange. Trading of the stock was halted while waiting for a response. The Exchange demonstrated a bias against the merger and requested further detailed and intrusive information.
It appears that the Canadian Securities Exchange may have been nervous about such a venture due to the reputation of cryptocurrency, or possibly due to Dotcom’s ongoing legal battle with the United States. There are still a lot of unanswered regulatory questions regarding virtual currency, as well as ongoing bad publicity around Megaupload and Kim Dotcom himself, so this delay isn’t a surprise.
Bitcache looked at their options and decided it would be in the company’s best interest to move forward without the Canadian investment. The statement Kim shared continued:
The Bitcache board has decided that the complexities of the proposed merger would be unnecessary burdens in this early stage of its growth. Bitcache feels it is important as a technology startup to stay nimble and reduce corporate complexity in favor of technology development. The experience of dealing with the Exchange has only served to encourage that view. We are looking forward to a beta launch of Megaupload 2.0 and Bitcache later this year.
Will they look elsewhere for financing? Crowdfunding could be a viable option, as Megaupload commands a large fan-base that would be excited about a more resilient Megaupload 2.0. However they proceed, it seems that they aren’t planning to let this roadblock slow the project down.
Dotcom and his team are pushing on to ensure that the service will be ready for its first beta release. Before that, a proof of concept (PoC) is set to come out during the second quarter of this year. After the PoC is released and fine-tuned, the closed beta release will follow. They’re allegedly planning the first open release for the end of this year, but for now, it would appear that Dotcom’s twitter is the best place to turn to for any future updates.