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