Bitcoin Group delays Aussie float again after falling short
Bitcoin miner Bitcoin Group has put off its float again after it fell well short of its raising target of $20 million.
The company, which was to be the second bitcoin company to list on the ASX, told investors on Friday it was “pleased” it had raised $5.9 million under the IPO, but it had decided to postpone its planned Monday listing while it met requests for further information from the ASX on the company and the blockchain it “mines” for bitcoins.
“Investors will appreciate that ‘block chain’ is a new technology and we are working with ASX to satisfy its request for additional information as part of the listing application process,” it said.
The company has delayed its IPO at least four times following numerous orders from the Australian Securities and Investments Commission to improve disclosures in its prospectus.
Bitcoin Group uses powerful computers to “mine” Bitcoin’s distributed ledger blockchain. This involves cracking complex encryption of the blockchain, which is how bitcoin transactions are verified.
Bitcoin Group gets bitcoins as a reward for doing this, so its future is closely tied to the value of Bitcoin.
Since January, the digital currency has been hit by the claims of bitcoin software developer Mike Hearn, who has spent five years working on it and promoting it – that it had failed. It has fallen from $651 on January 9 to $530 per bitcoin on Monday.
Bitcoin Group’s prospectus says it will return the money raised to investors if there is not enough raised to meet its operational requirements.
cant get enough start up money from the looks..surprising when you see some of the other wacky ideas and companies who get their ipo’s out there..
“Bitcoin Group uses powerful computers to “mine” Bitcoin’s distributed ledger blockchain. This involves cracking complex encryption of the blockchain, which is how bitcoin transactions are verified.”