BnkToTheFuture, a Bitcoin-focused crowdfunding platform, has announced its launch of a fund to invest in Bitcoin Group (ASX:BCG) in anticipation of its IPO.
Bitcoin group, whose primary business is the mining of bitcoins, was approved to go public on the Australian Securities Exchange (ASX) after a lengthy review process. The company got clearance early last month, making it the first crypto company to go public through the IPO process. All other publicly traded crypto companies have taken the “back door” route via the reverse merger process.
Shares of Bitcoin Group will debut for trade on November 11 as ASX:BCG.
The IPO plan is to issue 100 million new shares, at A$0.20 each, raising A$20 million ($14 million) through the offering.
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The crowdfunding platform has raised $2.96 million (81.5%) of its $3.63 million investment goal.
Bitcoin Group CEO Sam Lee believes that the IPO will bring more legitimacy to the industry and transparency for investors.
The IPO also opens up another avenue for those looking to gain exposure to the mining economy. Investors won’t have worry about maintaining equipment by mining on their own, nor deal with opaque mining contracts.
Bitcoin mining is a high reward, high risk game for investors. Bitcoin prices have a major impact on profitability; unexpected drops can render a well-capitalized operation unprofitable overnight. Conversely, any bitcoin price appreciation above the break-even point is pure gravy for investors.
One ought to note that the other publicly traded crypto company in Australia, Digital BTC, was also involved primarily in bitcoin mining. However, it recently got out of the game after suffering losses due to declining bitcoin prices.