Bitcoin Group gets nod to go ahead for first IPO

Bitcoin Group, an Australia-based bitcoin mining company, has received approval from the Australian Securities and Investment Commission (ASIC) on 4 September for an AU$20 million public offer, with a proposed listing on the Australian Securities Exchange (ASX) scheduled for 11 November 2015, the company said in a press release.

“The public offer will mark a significant milestone for our company and for the broader industry because it will help to advance recent regulatory initiatives by the Federal Government aimed at bringing clarity and accountability around the benefits of bitcoin to Australian consumers and businesses”, said Sam Lee, CEO of Bitcoin Group.

The release further said that the proposed IPO is on course to be oversubscribed with the company having already reached its minimum capital raising target. Taking into account this demand, Bitcoin Group is limiting its ASX BookBuild to AU$2 million, it added.

Around 90% of proceeds raised from the IPO will go towards expanding Bitcoin mining’s operations and meeting the costs of its existing activities, while the remaining 10% of capital will cover expenses related to salaries, sales commissions, listing fees and marketing.

“This is good for investors who, ultimately, will be better placed to make informed decisions about the role and merits of a company like Bitcoin Group. As an industry leader and soon-to-be share market pioneer, we play a critical role in continuing to educate the market while providing investors access to an exciting, high-growth industry sector through a profitable investment vehicle”, said Mr Lee.

The bitcoin mining company, founded in September last year, has operations in China, Iceland and Australia and is focused on becoming one of the world’s largest bitcoin mining companies.