Bitcoin Group abandons IPO, ASX listing application
Bitcoin Group will continue with its bitcoin mining activities and is considering renewing its IPO and ASX listing attempts in the future.The company says it is likely to proceed with a new offer after Blockchain halving has occurred and the price of bitcoin responds to the halving, which Bitcoin Group expects to occur by September 2016.
Meanwhile, investors are instructed to contact the company regarding IPO refunds.
The announcement from the company can be viewed below.
Dear Investor
The Directors of Bitcoin Group Ltd would firstly like to thank all our IPO investors for their support in our attempt to become the world’s first bitcoin IPO.
Bitcoin Group is an audited public company with a track record of profitably, having mined over $8 million dollars worth of bitcoins (14,000 bitcoins) since 2014.
Considering the long and eventful journey the IPO has taken, we would like to offer our investors a summary of the past 6 months, that led to the disappointing outcome of announcing today, that Bitcoin Group is withdrawing the Second Replacement Prospectus dated 24 December 2015, to list on the Australian Stock Exchange (ASX) and return IPO subscription application monies to investors.
We will be continuing our bitcoin mining activities.
The key reason for the withdrawal of the offer is due to the requirement of the ASX, that Bitcoin Group procure a working capital report from an independent accounting firm, a report not specifically required for a listing on the ASX. In preparing the working capital report, Grant Thornton, the independent accountant was required to factor in the reduction of newly minted bitcoins released on the occurrence of block halving in July 2016, without regard to the expected increase in bitcoin price.