Bitcoin Group raised A$5.9 million. How far is it from listing?

On Tuesday, Melbourne-based Bitcoin Group announced that it had raised A$5.9 million, the world's first bitcoin mining company to raise funds through an IPO, and was still a long way from its A$20 million target. According to the original plan, the company intended to use A$18 million of the raised funds to invest in mining equipment and facilities, while the remaining A$2 million would be used for general corporate purposes, including listing costs.

Although the funding amount did not even reach a third of the target amount, the company's CEO Sam Lee still called it a "pretty good result."

“That’s enough to allow the company to execute on its strategy of expanding our footprint by acquiring new mining equipment,” he told CNBC on Tuesday.

Bitcoin is a digital currency that allows users to trade goods and services online. Bitcoins are distributed through a process called mining, without the need for a central bank. This process is run by a decentralized network of computers that compete with each other for the right to keep the network's ledger.

According to Bitcoin Group's original plan, the company was expected to be listed on the Australian Stock Exchange (ASX) for trading on Tuesday, with its scheduled stock code being BCG. However, as of now, the company has not appeared on the ASX.

There are many concerns about Bitcoin: most notably its volatility and its reputation for facilitating illegal activity. Currently, the Australian Taxation Office takes the position that Bitcoin is an asset and that users are subject to capital gains tax on it.

“As an investor, I would think twice before investing in a bitcoin mining company,” Nicholas Debock, a venture capitalist at Balderton Capital in London, told CNBC.

It is reported that Bitcoin Group currently has 1.2% of the computing power of the entire network, and it has 6 mining centers in China and Iceland. Most of its operations are deployed in China (cheap electricity).

Original text: http://www.cnbc.com/2016/02/02/worlds-first-bitcoin-mining-ipo-falls-short.html
By Katy Barnato
Translator: Overnight porridge
Source (translation): Babbitt Information (http://www.8btc.com/bitcoin-group-5-9-million)