Bank Sponsored
bitcoin startups
Bitcoin 2 mins

Bitcoin Group Falls Short; Raises US$5.9 Million in IPO

Avatar Joseph Young 4 years ago

Bitcoin Group, one of the largest mining operators which has been planning its initial public offering (IPO) since 2014, announced that its IPO offer and ASX Bookbuild which closed on January 25, 2016, raised over US$5.9 million.

The quotation of the shares on the Australian Securities Exchange (ASX) has not been listed yet, and Bitcoin Group is working with ASX on the listing application progress.

Initially, the company aimed to raise US$20 million in the IPO, by offering investors 100 million shares at 20 cents each. Bitcoin Group planned to disburse US$18 million raised from the IPO to the improvement and and purchases of mining equipment. However, Bitcoin Group failed to reach its investment goal, raising 30% of the expected amount.

Bitcoin Group Chief executive officer Sam Lee was very optimistic towards the IPO in early January. Lee stated that about US$18 million from the IPO will be spend on more mining chips and computers to increase the group’s mining power.

“This is a billion dollar opportunity rather than a million dollar one,” said Lee. “Bitcoin will revolutionise the world of finance because it has the potential to make the world of finance more accountable and cheaper to operate.”

Despite the disappointing IPO, Bitcoin Group hopes to see a growing trend in their publicly listed shares, which will be processed by ASX very soon.

The Australian Securities Exchange supports bitcoin, blockchain technology and digital currencies as the ASX team led by Funke Kupper believe that the distributed ledger technology can be implemented to reduce costs and raise security measures.

ASX already partnered with Digital Currency Holdings to redesign their trading platform and test the potential benefits with its clients and regulators.

“Distributed Ledger Technology could provide a once in a generation opportunity to reduce cost, time and complexity in the post-trade environment of Australia’s equity market,” said Elmer Funke Kupper, Managing Director and CEO of ASX. “Moreover, it could stimulate greater innovation by ASX and other providers of services to issuers, investors and intermediaries. ASX and Digital Asset will work together to design a solution and share the potential benefits with clients and regulators.”

3The newly built design of ASK could also allow third parties to build new services for intermediaries, creating a more competitive marketplace across a broad range of services. If the exchange adopts these changes by the end of 2016, Bitcoin Group could expect to see an increase in the share price of their company.

Tags: BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Nexo

Instant Crypto Credit Lines™ from only 5.9% APR - unlock your crypto-wealth tax-efficiently, without selling it. Earn up to 8% interest per year on your Stablecoins, USD, EUR & GBP. $100 million custodial insurance.

Ad
Show comments