Bitcoin Group cancels IPO and ASX listing application

Investing | March 9, 2016 By:

Bitcoin Group announced it is withdrawing the second replacement prospectus to list on the Australian Stock Exchange (ASX) and will return the $5.9 million in IPO funds that it raised from investors.

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.

ASX made its decision after Grant Thornton Australia produced an independent report stating that Bitcoin Group has sufficient working capital to carry out its stated objectives. However, in its letter, ASX rejected the report’s conclusions.

Bitcoin Group assures investors that it is continuing its bitcoin mining activities and intends to proceed with a new offer after the block halving, when the bitcoin price will reflect the reduced number of bitcoin being created. The group’s directors expect this to occur by September 2016.

Bitcoin Group is an Australia-based bitcoin mining company.