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NEW YORK (InsideBitcoins) — Bitcoin-based retail transactions are gaining traction. Last month, Dell announced its acceptance of the digital currency for purchases on its website, and the strategy seems to be working. Saturday afternoon Michael Dell tweeted about a substantial order the company received, paid in bitcoin.
The CEO of the self-named company reported the sale of PowerEdge servers, with the single order totaling 85 bitcoin, about $50,000. The buyer was unidentified.
One follower responded: “Congratulations! You just made an extra $1,000 instead of giving it to Visa! I’m so proud.”
Credit card companies typically charge as much as 3% in processing fees. For typical retailers, Coinbase, the bitcoin payment processor for Dell, doesn’t charge a fee until a merchant reaches $1 million in sales, then it takes a 1% fee. Details of the terms between Coinbase and Dell have not been disclosed.
Dell founded the company in 1984 at the age of 19 with seed money of just $1000. The company, taken private in 2013, now claims revenues of just under $57 billion.