The IPO for Bitcoin Group, previously celebrated as the first in the crypto industry, has been delayed by another month following additional requests by the Australian Securities and Investments Commission (ASIC).
The Australia-based startup, whose primary business is the mining of bitcoins, had appeared set to finally go live on December 11 after more than a year’s worth of delays.
Listing on the Australian Securities Exchange (ASX) is now expected for January 20, 2016. Shares will be listed as ASX:BCG. The IPO offer period has been extended from November 20 to January 8, 2016.
The startup attributed the latest delay to ASIC requests to “address some additional matters.” Among them is for Bitcoin Group to appoint “an appropriately qualified independent expert to report on the bitcoin mining process and the bitcoin mining equation contained in the Replacement Prospect[u]s.”
Why Your Enterprise’s Finances Rely on Employee TrainingGo to article >>
The Replacement Prospectus was the previous document of record, and referenced by the startup when making corrective statements regarding its financials and an implied investment by the Australian Prime Minister.
It then issued a Supplementary Prospectus, which stated the listing’s delay by one month to December 11. After the latest ASIC request, a Supplementary Prospectus II was issued.
ASIC’s request was likely made in order to ensure that investors are fully aware of the risks behind the bitcoin mining revenue model, which investors may not be accustomed to. The model relies on the successful operation of the Bitcoin network, securing new bitcoins awarded by it and a sufficiently high market value of bitcoin.
The first crypto company to successfully complete the IPO process may now be Coinsilium, a blockchain-focused venture investment firm, whose scheduled public listing date is November 23. The listing is planned for ICAP’s Securities and Derivatives Exchange’s (ISDX) growth market. All other publicly traded crypto companies have taken the backdoor approach by reverse merging with public shell entities.