Following months of repeated delays, Australian bitcoin miner, Bitcoin Group, is now set to make its debut on the Australian Securities Exchange (ASX) in February.
Melbourne-based Bitcoin Group is now gearing up for its official public float on the ASX in February. The miner is offering investors 100 million shares at 20 cents per share. The IPO is seeking to raise $20 million by the date of closure on January 25.
Bitcoin group operates five computer centers in China and oversees approximately 6,000 machines to mine one to two blocks a day (up to $20,000 in revenue a day in current rates). While the block reward is set to halve in July, Bitcoin Group CEO Sam Lee sees any loss of revenue offset by the cryptocurrency’s appreciation in the future.
This is a billion dollar opportunity rather than a million dollar one.
Bitcoin will revolutionize the world of finance because it has the potential to make the world of finance more accountable and cheaper to operate.
A significant portion of the proceeds from the IPO — about $18 million – will be used to increase the company’s mining power by purchasing more mining infrastructure.
A Long Time Coming
In October 2014, the Bitcoin Group revealed that it had hoped to be become the world’s first publicly floated bitcoin-based company. At the time, the group was looking to be listed on the ASX by mid-November. A delay saw the Australian Securities and Investments Commission (ASIC) warn Bitcoin Group in February against making public statements about its proposed IPO before the miner lodged a prospectus, with a stop order.
At the time, ASIC Commissioner John Price said in a media release:
ASIC will often review pre-prospectus advertising or publicity to ensure legal requirements are being met. This is because any statements made about a potential offer may influence the investment decisions of consumers who will not have the benefit of all material information that would be included in a prospectus.
The ASIC interrupted another listing scheduled for July 2015, to require Bitcoin Group to issue a replacement prospectus which further delayed the IPO closure to October 30, 2015. In the lead up to the then-launch of its IPO, the Bitcoin group gained a cash boost through investment platform BnkToTheFuture, ahead of its IPO launch on November 11, 2015.
Bitcoin Group then had to delay its listing date to December 2015 whie retracting suggestions that claimed Australian Prime Minister Malcom Turnbull had personally invested in its IPO.
However, the miner would see another delay sought to verify the ‘bitcoin mining equation’ put forth in the company’s second prospectus. The Commission recommended the appointment of an “appropriately qualified independent expert,” to report on the bitcoin mining process and equation established in the replacement prospectus.
A final delay saw the revised table set currently to January 25, 2016. Another prospectus was revealed, this time, complete with the independent expert’s report.
Now in the final stretch ahead of the company’s public listing on the ASX, Lee added that Bitcoin Group has the necessary setup and business model to remain on the ASX, with no details of shares being revealed while the offer is still open.
I’m not concerned with the final amount raised as having proven our business model to be profitable ensures we have the runway necessary to grow the company at a sustainable pace.
Bitcoin Group shares are due to start trading on February 2.
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