Blog / Articles / Australian miner decides to withdraw their newest IPO

Australian miner decides to withdraw their newest IPO

Australian miner decides to withdraw their newest IPO

During the last couple of months, numerous bitcoin start-ups alongside with already consecrated ones have published their initial public offerings (IPO), as a way of gathering investors and launching their new services on the market. While most of them have been successful, there’re also companies which sometimes decide to cancel out their IPOs in the last minute.

One such example if the cryptocurrency miner offered by the Bitcoin Group Ltd. According to sources, it seems like it has withdrawn all of its plans to work on the Australian securities exchange. Based on the recent reports, it seems like the company has decided to blame things on the ASIC itself, by mentioning a call made by the exchange towards the company, to prove that it has enough capital to successfully carry out its operations.

As the company has decided to withdraw from their initial IPO, all of the money that has already been collected will be sent back to the investors. In a recent press statement, the Bitcoin Group Ltd. has mentioned that they’ll plan to reconsider putting up a fresh offer for the Australian market a couple of months later, after the bitcoin block halving event will occur. The reason behind this is that once the event occurs, it’s expected that the value of bitcoin will sharply increase, thus giving them enough resources to answer the Australian Securities Exchange’s call.

The IPO pulling event is quite saddening, considering the fact that the group’s offering would have been the first in Australia for a bitcoin miner. For those that do not know, bitcoin miners are computer owners who earn bitcoin by confirming and processing transactions in the currency, while also using their computer’s processing power to solve difficult algorithms. In exchange, they’re rewarded with mining taxes, alongside with freshly issued bitcoin which are then added into the global supply.

What’s interesting is the fact that the Bitcoin Group Ltd was at their second IPO in Australia, with their initial one filed back in June 2015. At that moment in time, issues appeared due to several months of delays, thus forcing the IPO to close on January 25th, after the company managed to raise somewhere around $4.4 million US Dollars.

The call could not be provided by the company, as they based their judgement on a high increase of the bitcoin price, which would provide them with enough money to easily carry out their operations. In fact, following the last block halving in 2012, the bitcoin price increased by roughly 1,000%. However, due to the fact that the ASIC is not okay with forecasting on the bitcoin price due to its volatile nature, the firm will be forced to either get their hands on more money, or actually wait for the halving to occur, before reaching out and submitting their next public offering, and actually accepting customers.

Based on everything that has been outlined so far, what do you personally think about the event? Let us know your thoughts in the comment section below.

⏴ Back to Blog