Bitcoin Group has scrapped its long awaited plans to become the world's first listed bitcoin miner.
The Melbourne-based company's initial public offer closed on January 25, but the $5.9 million raised will now be returned to investors.
"The key reason for the withdrawal of the offer is due to the requirement of the ASX, that Bitcoin Group procure a working capital report from an independent accounting firm, a report not specifically required for a listing on the ASX," Bitcoin said in a letter to investors.
The company's independent accounting firm was required to factor in the reduction of newly minted bitcoins caused by so-called `block halving' in July 2016, without regard to the expected increase in bitcoin price, Bitcoin said.
The last time block halving occurred in 2012, the bitcoin price soared in the proceeding six months, the company said.
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The corporate regulator prohibited any forecasting on the bitcoin price, meaning the working capital report was unable to allow for any increase in bitcoin price once the number of bitcoins available to be mined halved in July, Bitcoin said.
The company said it will consider a new IPO after the bitcoin price responds to the July block halving, which it expects will occur by September.
