Dues to launch on the 11th November at share price of 20c minimum purchase $2k The company is primarily a bitcoin miner with several mining 'factories' based in China and Iceland. More details and prospectus an be found here = http://www.asx.com.au/asx/research/upcomingFloatDetail.do?asxCode=BCG Anyone have any thoughts and opinion on this? 20c sounds expensive and the whole operation is at the mercy of currency fluctuations.
I've been looking for some crypto exposure but this does not seem to be the way to do it. I'm still kicking myself for missing the bitcapital tranche 2, though I've been getting into a few other investments on bank to the future now. A few things from the BCG prospectus : dividend policy "Bitcoin Group is committed to expanding its BCM Operations and anticipates that income will be directed into its expansion program articulated in Bitcoin Group's business model over the next 3 years." So you won't see any return for the first 3 years, by which time the difficulty per coin will be MUCH higher and the hardware they've bought with raised capital will be obsolete. They have a plan to upgrade over time but I don't think anyone knows what the mining hardware will look like in 3 years. They might be able to expand the business to overcome this with their earnings if they are profitable enough but you're taking a big gamble on what bitcoin will look like in early 2019. Many other mining set ups will pay dividends as soon as their hardware is set up. On the experience of the management team: Bitcoin Group commenced trading in 2014 and as such has limited operating history. None of the Executive Directors have experience as a director or executive of an ASX listed entity. They are raising capital to: provide working capital to expand on its BCM Operations to increase Hash Power by meeting the costs of purchasing more Mining Equipment, associated cost of Mining Equipment deployment and meeting the costs of exploring opportunities to acquire additional Hash Power from Hash Power They have no plans for any sort of technology development or investment in other crypto or blockchain start ups or businesses, strictly a miner. This means they are doing absolutely nothing special that you couldn't find elsewhere or even do yourself on a small scale. Bitcoin miners are a dime a dozen and it's quite unclear in what way they are more qualified or efficient than any other group or company at mining. They speak briefly about possible acquisitions of other mining groups but that's really just buying rigs. Their business model also relies on cheap electricity which is only garunteed a year in advance, I'm not sure I'd want to bet that electricity prices in China won't increase over the next few years (either through regular market forces of increased consumption or some sort of carbon/polloution pricing program). Finally is the bitcoin price and future use. I'm still relatively new to crypto so others are me qualified than I to comment, but you have to think about this given that you aren't going to see any return for years. Maybe crypto takes off but it's a different implimentation or different coin that their current hardware isn't set up for. Given that they are based in China for the cheap power you would only need a Chinese crack down on crypto to completely break the business. I think a mining start up that will take raised capital and provide pay out on much shorter time scales makes more sense, it's much easier to forecast risk and potential reward in the shorter term. I also think that a business that has a broader model of innovation and investment in new businesses is much more likely to benefit from an expansion in the blockchain/crypto space compared to BCG which is very narrowly focused on BC. I'm personally looking for something a little more innovative. I only skimmed through the prospectus so I might have missed something but the bottom line is that they're just a miner who won't pay out for years. If they get the capital they need and show in a year or so that they can stay profitable through the transition to new hardware and BC is still looking strong then they might be worth looking at again, particularly if they are trading at a discount, but that's a ways off. Might be worth keeping an eye on over the weeks after the IPO, if they get their cash and the share price crashes you could punk up a little at a sharp discount as a speculative play.
I'm also looking for some Crypto exposure (other than buying some BTC, which I'll probably do also at some stage anyway) and was hoping this might be a good opportunity. By the time I'd finished reading the prospectus I'd pretty much convinced myself that this wasn't the way to go about it for a lot of the reasons you mentioned. Worth following to see where they go, but not worth getting on board straight away. Thanks for the additional info guys. You've helped me further convince myself it's not where I want to be putting some money just yet... Cheers.
Go lightly, any other suggestions apart from the obvious purchasing of Bitcoins? I plan on doing this but I'm hoping short term the AUD might rise a little further while BTC is slowly falling before taking a (very) small plunge to test the waters. Are there ASX listed companies already involved in CC that are worth a look? Cheers.
Bnktothefuture.com is probably safest most mainstream way to invest into cryptos and blockchain startups. Plus buying BTC and spreading through a few good ALTS like WBB, START, LTC then a few more risky like SPEC, NEU they are in accumulation phase. It is always high risk but much higher return. Or I know of a new Alt exchange that are offering shares that should be good in the 5 year term all going well plus twice monthly Divs Just got to spend lots of time reading bitcoin talk to discern what is FUD and what is good
http://cointelegraph.com/news/11539...s-shares-in-bitcoin-group-via-new-fintech-app Malcom Turnbull invested in it Well there you go, it's probably an inside job, No doubt it will go well. Crony capitalism 101 http://cointelegraph.com/news/11440...al-app-blockchain-party-launches-in-australia This is interesting to, A new political party built on the blockchain. I didn't no this but 13% of all bitcoins are held by Australians..... that's epic.
After reading this I got all hot under the collar for BC and went and did this: http://forums.silverstackers.com/message-856263.html#p856263 Basically what BCG are doing but you get paid out daily instead of 3 years and you know what you're getting exactly for your money.
https://bnktothefuture.com/pitches/...oup-the-world-s-first-bitcoin-mining-ipo.html Hah ha, they are actually going through BTTF to sell some pre IPO shares, at 20 cents each. question remains though aside from early pump how will this make money for shareholders?? they have 15 staff.. 15!!!! to run a BTC mining company, Not to mention probably contractors actually running the equipment for them in Iceland, give me 2 k of BTC for 4 years bet I can make more with it that this would pay. The whole pitch is explaining what BTC is to people... hello....
Yeah I saw that, have you run the actual numbers and they are in fact doing equivalent equity of 20caud a share on BTTF?
