Bitcoin Group, the Australia-based bitcoin mining business, has become a digital currency initiative to list on the Australian Securities Exchange (ASX). Being the first IPO of its class, the company is ecstatic to set “a precedent.” Initially, the company had a hard time with two prior stop orders on the first and second prospectus, September 10, was a different story.
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“The public offer will mark a significant milestone for our company and for the broader industry because it will help to advance recent regulatory initiatives by the Federal Government aimed at bringing clarity and accountability around the benefits of bitcoin to Australian consumers and businesses”, Sam Lee, CEO of Bitcoin Group.
The Bitcoin group was founded a year ago in September as a mining business. Mining operations exist in Australia, China, and Iceland with a mission to become one of the largest in the globe. The company collectively generates 6.2 petahashes, which is 1.57% of the earth’s hash power. Operations in China hold the most of this hash, with 5 large facilities housing the miners. Headquartered in Melbourne, Australia, Bitcoin Group first initiated with a friendship between Sam Lee, Allan Guo, and Ryan Xu. A month later, after being founded, the company announced its official IPO in October 2014. The IPO would be held on the Australian market, ASX.
Bitcoin Group has had difficulty with the IPO, with the placement of two stop orders on its public offering’s commencement. The Australian Securities and Investment Commission (ASIC) stopped the first prospectus on June 29th with its initial edict. On September 4, ASIC again placed another stop order on the company’s second try IPO initiative. One of the risks mentioned in the prospectus was the cost of electricity, so the company places its enterprise in regions with low-cost power distributors. Finally, Bitcoin Group successfully was granted permission with its third attempt to list on ASX. The public offering is expected to hit markets around November of 2015.
“As the world’s first IPO in our industry, we are no doubt setting a precedent.”
Sam Lee, CEO of Bitcoin Group
The proposed IPO is said to be on course with its timing and has reached its minimum capital raising target for entry. They claim that 90% of Bitcoin Group’s proceeds will be used to broaden it’s global mining operations, while the 10% left will cover salaries and marketing. The company plans to offer 100 million new shares to raise 20 million. The 18 million will be used for the acquiring of high tech mining hardware to process transactions. Also, the Bitcoin Group states they have abstained from using “backdoor listings” that other virtual currency services have used. They mean to be the first to make their mark in this industry by setting the precedent.
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