News: Bitcoin Group to raise $20M through IPO

Bitcoin Group is raising up to $20 million as it seeks to become the world’s first Bitcoin initial public offering on a major global exchange.

The company is a Bitcoin Mining operator that currently produces about 1.45% of the global output of the digital currency.

Of the proceeds, $18 million of the funds raised will be used to invest into Bitcoin Mining hardware and facilities, with another $2 million to cover general corporate purposes, including listing costs.

Bitcoin is a digital currency built on the world’s first decentralised trust system. It cannot be forged as Mining prevents double spending through verifying the authenticity of Bitcoin transactions.

Bitcoin Mining is viewed as a low-risk segment within the industry as it has a mathematically fixed market opportunity of around 1.3 million Bitcoins over the next 12 months, which at today's market value, represents an annual $380 million opportunity.

On the basis that Bitcoin Group reaches forecasted market share, it should achieve a production level of 374 to 551 Bitcoins per day, each worth A$337 as at 3rd July 2015.

As of 1 June 2015, there are 14.2 million Bitcoins in circulation. The total number of Bitcoins that can be released by the Bitcoin Network is capped at 21 million. It is estimated that this number of Bitcoins will be achieved around the year 2140 with 99% of the Bitcoins generated by 2032.

The company is supported by three cornerstone investors who have committed to remain as shareholders of Bitcoin Group for at least 12 months from listing on the ASX:

- Harry Wang, Managing Director of ANYING, Australia's third largest money remittance company (behind OzForex and Western Union) and the largest remitter between Australia and China;
- Victor Huang, Managing Director of OzYu Entertainment & Investment and OzStudy Group, a leading international education recruitment service and media agency; and
- Richard Gu, Managing Director of AXF Group, a conglomerate investment company that spans from real estate development into entertainment services.

Bitcoin Group will trade as BCG.