Despite Bitcoin’s precarious status in Australia, there is still a lot of interest in mining the virtual currency. Australia’s largest Bitcoin mining operator, called Bitcoin Group Limited, will hold an Initial Public Offering on the Australian Securities Exchange. By doing so, Bitcoin Group Limited becomes the first Bitcoin IPO on a major global exchange platform.
Bitcoin Group Limited – Prominent Investors and Big Plans
The name Bitcoin Group Limited may not be that well-known outside of Australia, but you can rest assured it is not the last time this Bitcoin company will be making headlines. Part of Bitcoin Group Limited’s success comes in the form of key investors, including Australia’s third largest money remittance company. Plus, there is also a conglomerate investment company spanning from real estate to entertainment service and everything in between, who are a major investor in Bitcoin Group Limited.
According to the information provided by us, the plan is for Bitcoin Group Limited to offer a total of 100 million shares on the Australian Securities Exchange. If everything goes according to plan, a total amount of AU$20m will be raised. Shares should be available until October 30th, and the expected settlement date is November 4th.
Official trading of Bitcoin Group Limited shares, which will receive the ticker “BCG”, will start on November 11th. The company is very confident that they will raise the predetermined amount of AU$20m, as Bitcoin Group Limited has already reached its minimum capital raising target, according to a company representative.
What makes the Bitcoin Group Limited IPO so appealing to investors is how the 100 million shares represent 60.7% ownership of the company. The co-founders and shareholders will retain 8.6% and 30.7% respectively. However, launching this IPO was not without various hurdles along the way.
In fact, two previous interim stop orders by the Australian Securities and Investment Commission in less than a year have caused delays over and over again. In February of 2015, the first stop order appeared, which was followed by a second one in quick succession. At that time, Bitcoin Group Limited allegedly solicited expressions of interest on social media, which was not the wisest decision.
After a long and difficult road, Bitcoin Group Limited finally cleared all of the regulatory hurdles by showing their revenue generation stemming forth from Bitcoin mining operations. All of this mining activity takes places through Bitcoin Mining Pty Ltd, which was acquired by Bitcoin Group Limited in February of 2015.
“Bitcoin Group generates revenue by providing computer processing activities (Hash Power) for bitcoin generation and transaction processing services to a pool operator that aggregates Bitcoin group’s Hash Power with other providers and provides this Hash Power to the public ledger system known as the Bitcoin Blockchain … Bitcoin Group receives consideration for providing such Bitcoin mining activities in the form of Bitcoins, less a 2.5% commission.” – Bitcoin Group Limited
Various Sources of Mining Equipment to be Deployed
Bitcoin Group LImited’s IPO prospectus indicates some interesting details in terms of mining hardware to be deployed. With over 3,500 units of mining equipment purchased by the company – ranging from Antminers to Dragon Miners and Miner Prismas – there is a lot of Bitcoin mining power to be deployed on the network.
However, that is not all, as Bitcoin Group Limited’s portfolio could envelop over 6,100 Bitcoin mining machines. At the time of publication, the company is responsible for 1.57% of the global Bitcoin mining hashrate, mining approximately 62 Bitcoin per day. During the first six months of 2015, a total revenue of AU$431,000 has been generated. Should the ICO prove to be successful, Bitcoin Group Limited hopes to provide over 13% of the total global Bitcoin hashrate.
“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.” – Bitcoin Group Limited CEO Samual Lee told DigitalMoneyTimes.
Source: Press Release Via Email
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