Bitcoin Mining Equipment Maker Ebang a $100 million IPO for US listing

The Bitcoin Mining Equipment Manufacturer Ebang International Holdings Inc. plans to raise through an initial public offering (IPO) in the United States up to US $ 100 million. The Chinese company will sell common shares class A with a par value of 0.001 HK$ (0,00013 US dollars) per share when its IPO is hereby approved for submission.

In a on Friday with the U.S. Securities and Exchange Commission has filed a request Ebang said that it intends to record its shares on either the New York stock exchange (NYSE) or the Nasdaq Global Market under the Ticker symbol EBON.

The proceeds from the offering will be used primarily for the “development and introduction of new mining machinery, the branding and marketing activities of the company, as well as the Expansion of Overseas operations and new businesses”, the company said.

Ebang was founded in 2010 and is one of the world’s largest manufacturer of mining machine for Bitcoin. It designs and manufactures the Ebit line of ASIC-Chips used in Bitcoin Mining. In the year 2019, the Ebit Chips accounted for 82% of the turnover of the company. The mining machines from the E12 series with a Hash-Rate of up to 50TH/s and processing power efficiency of 57W/TH sold the fastest, followed by the machines of the E10 series.

However, when the price of BTC in the year 2018 and in part in 2019, fell, were beaten, the profits of Ebang. The net loss increased from $ 11.8 million in the previous year, to 41.1 million dollars in the year 2019. The revenues fell last year to 66% to 109,1 million dollars, compared with 319 million dollars in the previous year.

The sales of Chips are broken with the average selling price. In the year 2018 Ebang sold 415.930 Ebit Chips at an average price of 737 dollars, but the number of the last year, sold Chips fell on 289.953 at an average price of 304 USD.

The price of Bitcoin tends to have a direct influence on the market demand for our Bitcoin-mining machinery, both in terms of price as well as the amount, and we expect this Trend to continue. In addition, it is expected that the significant decline in the Bitcoin price has a negative impact on the value of our portfolio of Bitcoin-mining machines, and led us to increase loan sales,

Ebang said.

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