Australian Bitcoin Miner Withdraws Bid for Public IPO

Bitcoin Group is returning $5.9m, it raised from investors after the Australian Securities Exchange (ASX) said the firm needed to raise more capital.

Mar 9, 2016 at 3:40 p.m. UTC
Updated Sep 14, 2021 at 1:59 p.m. UTC

Australian bitcoin miner Bitcoin Group is returning $5.9m it raised from investors after the Australian Securities Exchange (ASX) said the firm needed to raise more capital and resubmit its application.

The firm said in a 9th March statement to investors that it would return the funds after Australian securities officials deemed the firm ineligible to list due to concerns about its long-term operational viability.

The dispute followed the submission of a third-party working capital report by accounting and consulting services firm Grant Thornton.

ASX, as detailed in a letter sent to Bitcoin Group on 4th March, drew issue with the report's conclusion that Bitcoin Group would need to raise fresh capital in 2017 in order to stay operational after the bitcoin mining reward falls from 25 BTC per transaction block to 12.5 BTC.

Bitcoin Group disputed this finding in their investor note, arguing that Grant Thornton did not take into account possible price increases following the subsidy halving, as well as an expected drop in the mining difficulty or future efficiency gains in mining hardware.

The company said:

"The directors consider that it is appropriate to now withdraw from the IPO process and consider proceeding with a new offer after blockchain halving has occurred and the price of bitcoin responds to the halving, which we expect to occur by September 2016."

The withdrawal marks the latest incident in a long string of problems for the mining company in its dealings with Australian regulators.

Bitcoin Group announced its intention to conduct the first bitcoin-focused IPO back in the fall of 2014, a process that led to friction between regulators and the company following statements made on social media.

Image via Shutterstock


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
2
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown
3
CoinDesk - Unknown
Former BitMEX CEO Arthur Hayes Sentenced to 2 Years Probation

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

Hayes pleaded guilty to one count of violating the Bank Secrecy Act (BSA) in February, and faced a sentence of up to 12 months in prison.

CoinDesk - Unknown
4
CoinDesk - Unknown
Market Wrap: Cryptos Decline Amid Choppy Trading, DeFi Tokens Underperform

Aversion to risk remains as volatility returns to stocks and cryptos.

Aversion to risk remains as volatility returns to stocks and cryptos.

CoinDesk - Unknown