By issuing a stop order, the Australian Securities and Investment Commission (ASIC) has further stalled the initial public offering (IPO) requested by Bitcoin mining company Bitcoin Group Limited (BGL, or simply: Bitcoin Group). The reason for this stop order is as of yet not known.
A stop order is an administrative mechanism that allows ASIC to prevent offers being made under a disclosure document, which is presented to prospective buyers of Bitcoin Group shares. Such a measure can be taken when ASIC believes the IPO contains a misleading statement, requires additional information, or if a new circumstance has come up since the disclosure document was lodged. It is unclear why Bitcoin Group was issued a stop order.
A hearing will be held within 21 days to allow Bitcoin Group to put its views to an independent delegate. After the hearing, ASIC may lift the interim stop order, or place a final stop order preventing the IPO from happening.
Bitcoin Group is a Bitcoin mining operator based in Melbourne, with close ties to the Chinese mining industry. The company claims to currently produce some 1.45% of global mining output by operating