Bitcoin Group withdraws IPO at only 2% of targeted demand

The world’s first IPO of a Bitcoin company has been postponed, after it managed to raise just AUD 367,902.20, which marked only 1.8% of its AUD 20m target when the IPO closed on 25 January 2016. This signifies Bitcoin Group’s third failed attempt to float, after two previous attempts were prevented by the Australian Securities and Investments Commission (ASIC). Sam Lee, CEO of Bitcoin Group, remained positive, expressing his satisfaction with the company’s broad spread of new investors. Mr Lee went on to highlight that these numbers do not include all application subscriptions and that “the company’s success is tied to the future of Bitcoin as a currency and as a store of value.” Despite Lee's attitude, reports view this as a sign of the waning confidence in the Bitcoin industry and its potential.

Bitcoin Group float postponed as the world’s first bitcoin miner IPO fails to catch investors’ interest

The world’s first bitcoin trading float has had to be postponed, as the firm managed to raise less than two per cent of its target.

Australian bitcoin miner Bitcoin Group was hoping to become the first miner of the cryptocurrency to list publicly, but it seems its hopes have been dashed, as The Australian revealed it had raised just AU$367,902.20 (£182,203.67) when its IPO closed on 25 January.

The sum marks just 1.8 per cent of the firm’s goal to raise AU$20m. This is Bitcoin Group’s third attempt to float, after its first two attempts were thwarted by the Australian Securities and Investments Commission.

Bitcoin Group’s chief exec Sam Lee played it cool despite the disappointing results, saying the firm was “very happy” with the broad spread of new investors, and adding that the numbers don’t include all application subscriptions:

As a bitcoin miner, our success is tied to the future of bitcoin as a currency and as a store of value.

The firm was initially slated to begin trading on 2 February, but this has now tentatively been pushed back to 8 February.

Last summer Coinsilium became the first public bitcoin company in London, when it floated on the junior market Aim.