Australian Bitcoin mining firm Bitcoin Group Ltd has scrapped its attempt to become the world’s first listed Bitcoin miner, following a liquidity demand from the Australian Stock Exchange (ASX).

The failed listing follows a long list of drama for the company, who originally floated the idea of listing in 2014.

Three failed attempts at listing throughout 2015 finally resulted in a public bookbuild for an eventual listing, which itself came up far short, with the company revealing in February that they had only managed to raise $AU5.9 million ($4.2 million) of the AU$20 million ($14 million) they had wanted from the process.

The latest drama in this ongoing story came about after the ASX demand Bitcoin Group procure a working capital report from an independent accounting firm, a report not specifically required for a listing, according to a statement from the company.

“In preparing the working capital report Grant Thornton, the independent accountant, was required to factor in the reduction of newly minted bitcoins released on the occurrence of block halving in July 2016, without regard to the expected increase in bitcoin price,” the statement noted.

“The last time block halving occurred (28 November 2012), the bitcoin price increased in value by 1032 per cent in the proceeding six months (from US$12.16 to US$125.58). Unfortunately, [the Australian Securities and Investments Commission] prohibited any forecasting on the bitcoin price which resulted in a report which did not allow for any increase in bitcoin price upon the number of bitcoins available to be mined halving in July 2016.”

Blockchain drama

The core of Bitcoin Group’s argument comes down to the current state of drama as the Bitcoin Blockchain runs out of capacity.

There is currently no consensus in the Bitcoin community as to how to deal with the issue, although the Bitcoin Core proposal seems to be ahead in terms of support; that said, any proposal to expand, or indeed half the block, can only succeed if it is universally adapted.

That aside, as much as many would like to see the Bitcoin Group go well, it’s not an unreasonable requirement for a company being listed to show they have liquidity of funds available to still be trading in 12 months time.

Bitcoin Group likes to blame the ASX for its ills, but ultimately their efforts so far have been a complete schmozzle from day one. And the fact that the bookbuild failed to raise the amount they were hoping for was due ultimately to investors themselves being able to see that as well.

The company says it will attempt to list again following the halving of the Bitcoin block later this year, and despite what we’ve just written, we wish them the best of luck.

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