Israel-based natural resources company, Blockchain Mining Ltd. is planning to list its stock on Toronto Stock Exchange and Nasdaq. Blockchain Mining, formerly Natural Resource Holdings Ltd., primary business is to invest and develop natural resource asset for a long-term goal.
The move from Blockchain Mining Ltd. followed after the Israel Securities Authority (ISA) indicated to prohibit companies that are linked with cryptocurrencies from trading on the Tel Aviv stock exchange. The proposed rules will also delist these companies from the exchange’s indexes if in the past they had already been listed.
In late 2017, Blockchain Mining Ltd. asserted that it would move its focus from gold and iron mining to mining cryptocurrencies. Since the announcement, the company shares skyrocketed but have since fallen to all-time lows.
Source: Google Finance
Israeli Blockchain companies in survival mode
Roy Sebag, CEO of Blockchain Mining, said that it plans to list shares and Advanced Depositary Receipts (ADRs), on both North American exchanges. However, this would be done once the company’s finances audit is complete.
“By July of this year, the company is expected to be traded on the Toronto Exchange, as well as an ADR on Nasdaq,” said Sebag.
According to Sebag, the company is willing to fight till the end to make sure the Israel Securities Authority (ISA) not to ban companies that deal with cryptocurrencies. However, to be on the safe side, we would want to be listed on other stock exchanges, notably Nasdaq and Toronto Stock Exchange.
Sebag told Reuters:
“Right now, we are in survival mode. We have been attacked by the regulator. So we are saying, ‘we are going to fight you on this rule, but we are going to list on two exchanges as well so if your rule goes through we are still listed on them.’”
Blockchain Mining to buy control of Bitfarms
Although, the proposed ban only applies to companies that do not have equity of more than 100 million shekels ($29 million) and those who do not possess three years of audited financial statements. In case of Blockchain Mining Ltd., its equity is about $41 million which is over the proposed limit, hence the ban would not imply on them.
Sebag at a press conference in Tel Aviv said, Blockchain Mining Ltd. and Quebec-based cryptocurrency mining company, Backbone Hosting Solutions, are jointly preparing to list on the company on the Toronto Stock exchange in a six month timeframe. On February 19, 2018, at a general meeting, Blockchain Mining is confirmed to purchase control of Backbone Hosting Solutions.
In a reverse merger, Blockchain is set to buy control of Canada’s Backbone Hosting Solution, which is known as Bitfarms, in a deal expected to close at a general meeting on February 19.
In the past, Canada’s Backbone Hosting Solutions, also known as Bitfarms, tried to list on the Tel Aviv Stock Exchange through an alliance with Blockchain Mining. However, the Israeli securities regulator blocked the attempt.
Bitfarms to extend operations
Quebec-based crypto-mining company, Bitfarms, has four operating blockchain farms where it primarily mines bitcoin in addition to other digital currencies. According to Sebag, the company plans to open three more mining units in 2018.
Sebag pointed that ISA’s decision to delist cryptocurrency companies is biased.
“Why is it that an entrepreneur starting in a garage looking to start a cryptocurrency business punished with a higher qualitative listing requirement than an entrepreneur looking to start a biotech or social media business?” said Sebag.
In December, ISA chairman, Shmuel Hauser said: “We feel that the prices of bitcoin behave like bubbles and we don’t want investors to be subject to that volatility and uncertainty.”
Will the Israel Securities Authority have any provisions for companies dealing with cryptocurrencies?