Bitcoin Group IPO on ASX Brings More Legitimacy To Digital Currency

Bitcoin is getting a lot of mainstream attention all over the world, as more and more people start to see the value in digital currencies. Shares of the Bitcoin Group will be sold publicly on the Australian securities exchange as of February 9th, which can be seen as another validation of Bitcoin’s legitimate status. Whether or not this listing will have an effect on the Bitcoin price, remains to be seen.

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Bitcoin Group Shares Trading Publicly Soon

DigitalMoneyTiimes_Australian Securities Exchange

Even though there is a lot of money circulating in the world of Bitcoin and digital currency, not every company has enough net worth to make it onto a major exchange platform. Mining companies, In particular, which are heavily reliant on the current Bitcoin value to make a profit, are facing an uphill battle when it comes to getting approval for an exchange listing.

Bitcoin Group is a different creature in that regard, as they operate roughly 6,000 mining rigs across seven locations. To keep overhead costs down, most of the mining hardware is located in places where electricity is fairly cheap, such as in China for example. That being said, it takes money to make money in the Bitcoin mining game, and even Bitcoin Group has to keep expanding if they want to remain relevant.

This is why the company is looking to sell no less than 100 million shares – priced at US$0.20 each – in the hopes of raising US$20 million in fresh capital. On paper, this should not be a problem, as Bitcoin is getting a lot more attention all over the world.  There have never been more merchants accepting Bitcoin than right now, as they see the value in a cheaper and instant payment method, compared to traditional payment solutions.

In fact, one could go as far as saying how this upcoming IPO on the Australian securities exchange will further validate the legitimacy of Bitcoin in the eyes of investors all over the world. Not only will this IPO help put Bitcoin Group on the global map, but it will also show that digital currency is here to stay, no matter what people might think.

Bitcoin Group CEO Sam Lee stated:

“It’s about giving ourselves and the industry accountability and legitimacy; people often doubt whether our industry is ‘real’ as bitcoin has been declared dead many times over. Unlike private companies, however, listed companies have a higher level of compliance; audited numbers will assist us in educating people interested in our industry with facts, not fiction.”

Australia Isn’t Too Keen on Bitcoin Just Yet

DigitalMoneyTiimes_Bitcoin Group Trading

It may come as a surprise to hear Bitcoin Group are holding their ICO on an Australian exchange.  The country has been keeping a very close eye on Bitcoin regulation. In fact, it is one of the few countries around the world where capital gains on Bitcoin are taxable, to much chagrin of both companies and individual traders.

But at the same time, Australian banks are actually warming up to the concept of blockchain technology. Not all the financial institutions around the world are sharing that sentiment though, but the list of interested parties is slowly growing. Furthermore, the US Securities Exchange Commission recently started allowing companies to issue shares on the blockchain and list them on the platform.

Source: Engadget

Images courtesy of Bitcoin Group, ASX, Shutterstock