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Israeli Crypto Mining Firm Files for IPO in Canada

Last Updated March 4, 2021 3:10 PM
Jimmy Aki
Last Updated March 4, 2021 3:10 PM

Israeli cryptocurrency mining company Bitfarms  wants to become a public company in Canada.

According to its press release , the mining company revealed that it had filed a preliminary prospectus with the Ontario Securities Commission, as it commences with the regulatory process for offering public shares on the Toronto Stock Exchange.

Bitfarms, the crypto mining farm provider, is also listed on the Tel Aviv Stock Exchange but the board feels the Canadian-headquartered and operated mining company could benefit from participating in the Canadian public markets.

The board sees the company benefiting from the Canadian capital market, which has raised “over CAD$54B in equity capital during 2017″ and through greater visibility, ” research analyst coverage, trading volumes, and improved access to North American capital markets.” Most importantly, the public listing of Bitfarms shares will also help streamline the fees the mining company currently pays for operating and reporting in different jurisdictions in Canada.

Chief Executive Officer of Bitfarms, Wes Fulford, argued that the firm would have greater visibility and access to funds by listing their shares on the capital market.

“Our analysis suggests that Canada has one of the most active public markets in our emerging industry, with several blockchain infrastructures and cryptocurrency mining companies having listed and raised significant capital over the last twelve months.”

The preliminary prospectus submitted to the Ontario Securities Commission includes the company’s historical financial statements,

Bitfarms pivot to blockchain and merged with Canadian cryptocurrency mining firm Backbone Hosting Solutions Inc. in July 2017. The announcement of the merger, which came on the heels of bitcoin’s incredible run last year, had sent the company’s stock price through the roof, so much that the Israel Securities Authority had to wade in.

The market has been inundated with IPO news from mining firms of late. Just last week, Chinese-based Canaan was rumored to be having second thoughts about its plan to list shares on the Stock Exchange of Hong Kong (HKEX). This is all speculation but the reports points towards the local regulators raising eyebrows regarding the bitcoin mining firm’s business model.

While the industry is still waiting for Bitmain’s planned IPO, Amsterdam-based Bitfury has intensified its efforts as it seeks to float the first cryptocurrency IPO in Europe.

Featured image from Shutterstock.