Categories: CryptoNews

Bitcoin Group Cancels ASX Plans And Refunds IPO Investors

Bitcoin Group is one of those companies who had high hopes of getting listed on the Australian Securities Exchange and bring more positive attention to digital currency. Unfortunately, those plans have been scrapped, as the company might not have enough cash at their disposal to survive its first year on the market. With such a grim future ahead, it only makes sense to rethink the plan and focus on building up the company through other means.

Also read: Coinbase Issue Prevents Humble Bundle Bitcoin Payments

Bitcoin Group Cancels ASX Plans

While it is certainly disappointing for the Bitcoin Group team to hear they would not make it through the first year of being listed on the Australian Securities Exchange, it is also good news in a way. Sometimes, the honest bad news is the best way to rethink the future of a company, and there is no doubt Bitcoin Group will come up with an alternative strategy to raise more funds.

In fact, that plan might result in a new Bitcoin Group IPO in the coming months, as this event would take place after the Bitcoin reward halves. Many people expect the having to give the Bitcoin price a big nudge upwards, although it is impossible to guess how the market will respond. The price could go down or remain stagnant as well, and only time will tell if there will be a growing interest in the digital currency come this Summer.

Moreover, Bitcoin Group has announced all of the funds raised in the current IPO will be returned to investors. So far, the company managed to raise US$5.9m, which is not bad, but it is not a stellar amount either. The company had set a goal of reaching US$20m through their IPO, which is a rather high target. With a new IPO right after the Bitcoin halving, that number could be much higher.

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A Bitcoin Group representative stated:

“The last time block halving occurred (28 November 2012), the bitcoin price increased in value by 1032 percent in the proceeding six months (from US$12.16 to US$125.58). Unfortunately, [the Australian Securities and Investments Commission] prohibited any forecasting on the bitcoin price which resulted in a report which did not allow for any increase in bitcoin price upon the number of bitcoins available to be mined halving in July 2016.”

Assuming Bitcoin Group would have been cleared for listing, they would have become the second Bitcoin company on the Australian Securities Exchange. However, the company would still be the only one to attempt a full IPO. Bitcoin Group’s Grant Thornton is confident the company can get listed on ASX, assuming the Bitcoin price hits at last US$500 or more.

Source: SMH

Images credit 1,2

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JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

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JP Buntinx

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