Bitcoin Group Seeks to Launch World’s First Bitcoin IPO

Bitcoin Group has announced it will pursue an initial public offering (IPO) in Australia. If successful, it would be the first bitcoin company to offer its shares to the public in an IPO.
The Melbourne-based firm offers a cryptocurrency arbitrage service, but plans to turn mining into its main revenue source if its offering is approved.
Bitcoin Group’s chief executive, Sam Lee, said:
‘We believe for bitcoin businesses in the mining industry be taken seriously they need to first have the transparency, accountability and legitimacy of a listed company.’
Bitcoin Group aims to raise AU$20m from the sale of 100 million shares at AU$0.20 a share, and would trade on the Australian Securities Exchange (ASX), according to the Sydney Morning Herald.
Emphasis on mining
Notably, Lee also runs Bitcoins Reserve, an offshore cryptocurrency arbitrage fund whose operations will be folded into Bitcoin Group. The fund claims a return of 765% to its clients for the 12 months ended from 24th May, according to its prospectus.
However, if the company raises the expected capital from a share offering, Lee wants to focus the firm’s efforts on mining instead.
Bitcoin Group has already engaged with mining rig makers and signed an agreement with an electricity supplier in anticipation of starting its mining business, according to an investor presentation.

This post was published at Coin Desk on October 16, 2014.