Australian Stock Exchange ASX to Allow BGL to Purchase Its Company Shares with Bitcoin

Golden Finance News - According to foreign media reports, the Australian Stock Exchange (ASX) announced on Wednesday that users can use Bitcoin to purchase shares of companies listed on its exchange. Blockchain Global Limited (BGL) said it will purchase a 40% stake in Digitalx, and part of the amount will be paid in Bitcoin.

According to the ASX, this is the first time Bitcoin has been used in a strategic investment on the exchange.

The exchange wrote that the first payment made via bitcoin on the Australian Stock Exchange, the bitcoin protocol used to buy shares on the Australian Stock Exchange, was between BGL and Digitalx, an ASX-listed blockchain-enhanced software solutions group.

Digitalx’s “Airpocket” app allows consumers to make secure and efficient Bitcoin remittances around the world.

Founded in 2014, BGL, formerly known as Bitcoin Group Limited, provides bitcoin mining, software and consultancy services involving blockchain technology. The company agreed to invest $4.34 million at 2.7 cents per share to acquire a 40% stake in Digitalx in a fully-owned manner.

BGL will pay a total of $300,000 of its investment through a convertible loan in Bitcoin. Of the remaining $4.05 million, $550,000 will be paid through convertible notes and the rest in shares.

The investment is subject to shareholder approval and is expected to be completed by June 30. If shareholder approval is not obtained, Digitalx has agreed to pay BGL a penalty of A$100,000.

BGL operates ACX.io, Australia’s largest and most popular bitcoin exchange, which had a 60 percent market share of the country’s total bitcoin market volume earlier this year, according to CEO Sam Lee.

In February, BGL reached a revenue sharing agreement with Digitalx to share the customer resources of Digitalx Direct Bitcoin ATM with ACX.io. In return, Digitalx will receive 50% of all revenue generated by ACX.io's introduction of customers.

From July 1, 2017, purchases of digital currencies in Australia will no longer be subject to GST, with the government allowing digital currencies to be treated like GST-exempt currencies.