Bitcoin Group IPO fails again

Australian bitcoin mining company Bitcoin Group has withdrawn from its IPO process after the Australian Securities Exchange (ASX) said the company needed to raise more funds and resubmit its application. Bitcoin Group subsequently returned $ 590 in funds it received from investors.

In an announcement issued on March 9 , Bitcoin Group stated that due to concerns about the company's long - term operational viability, Australian Stock Exchange officials firmly placed Bitcoin Group on the unqualified list and the company will refund investors' investments.

The dispute arises from a liquidity report submitted by Grant Thornton, a third-party accounting and consulting services firm.

The ASX detailed its reasons in a letter to Bitcoin Group dated March 4, which concluded that Bitcoin Group needed to raise new investment in 2017 in order to ensure the company could operate normally as the bitcoin mining reward drops from 25 bitcoins per transaction block to 12.5 bitcoins .

Investors have also taken note of the controversy surrounding Bitcoin Group. Grant Thornton ’s report does not take into account the price increase, mining efficiency improvement, and mining difficulty reduction that may result from the halving of mining revenue.

The company said:

“The board believes it is appropriate to launch the IPO process now and consider a new offer after the blockchain halving and bitcoin price halving, which is expected to occur in September 2016. ”

Bitcoin Group announced its intention to launch its first bitcoin-focused IPO back in the fall of 2014. The process also led to friction between the company and Australian regulators on social media.