Monday, December 5, 2022

SEC Suspension Won’t Stop Our Growth, Says First Bitcoin Capital

SEC Suspension Won’t Stop Our Growth, Says First Bitcoin Capital

Canadian firm First Bitcoin Capital (BITCF) has responded to a ten-day trading suspension from the U.S. Securities and Exchange Commission. It is looking at options to restore trading, including merging with another fully-reporting company.

Also read: Bitcoin Is So Mainstream Now. Can We Still Enjoy It?

Suspension Was Over Reporting Concerns

The SEC suspended BITCF “because of concerns regarding the accuracy and adequacy of publicly available information about the company including, among other things, the value of BITCF’s assets and its capital structure.”

In an open letter to shareholders, BITCF management said it was “disappointed” with the SEC’s suspension, a decision it called “hurried” and “likely a misunderstanding”. It is “working to move to a reporting status”, which involves producing a financial audit and possibly even a merger with another company.

BITCF shares are traded only over-the-counter (OTC) markets. According to Dow Jones, its market cap had grown over 6,000 percent in 2017 — which possibly attracted the SEC’s attention.

Multi Cryptocurrency Investment Business

First Bitcoin Capital logoFirst Bitcoin Capital describes its goal as acquiring Bitcoin startups, raising funding and investing in companies that develop Bitcoin software or hardware applications. It aims to operate in several sectors of the cryptocurrency industry, including R&D, exchanges and POS systems.

It also appears to be doing big business in creating and trading its own cryptocurrencies, mainly on the OMNI platform. The letter also claims BITCF has “generated more than 100 unique cryptocurrencies ranging from disrupting the air-miles-loyalty industry to providing solutions to the cannabis industry.”

It originally developed its own blockchain before deciding to switch to an existing platform. The company also holds and trades a portfolio of existing cryptocurrencies including bitcoin.

BITCF added that its management has never sold its shares, nor accesses the open market for funding. This is due to its ability to create new cryptocurrencies “on a shoe string”.

What do you think of the SEC suspension, and BITCF’s response? Let us know in the comments.

Images via Pixabay, First Bitcoin Capital

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