Bitcoin mining intrude maker Ebang International Holdings Inc. is seeking to raise up to $100 million through an initial public offering (IPO) in the U.S. The Chinese business will sell Class A ordinary shares of nominal value HK$0.001 (US$0.00013) per share if its IPO filing is approved.
In a datum with the U.S. Securities and Exchange Commission on Friday, Ebang said it intends to list its shares on either the New York Dynasty Exchange (NYSE) or Nasdaq Global Market, under the ticker symbol EBON.
Proceeds of the offering will be at bottom used for the “development and introduction of new mining machines, corporate branding and marketing activities, and expansion of overseas business and new points,” the company stated.
Founded in 2010, Ebang is one of the world’s largest bitcoin mining equipment makers. It designs and builds the Ebit line of ASIC chips used in bitcoin mining. In 2019, Ebit chips accounted for 82% of the coterie’s revenue.
The E12 series mining machines with a capability of a hash rate of up to 50TH/s and a computing power efficiency of 57W/TH sold the fastest, buttressed by the E10 series machines.
However, as the price of BTC tumbled in 2018 and part of 2019, Ebang’s profits took a beating. Its net disadvantage widened to $41.1 million in 2019 from $11.8 million a year earlier. Its revenue plunged 66% to $109.1 million finish finally year from $319 million in the previous year.
Sales of chips have slumped along with the mediocre selling price. In 2018, Ebang sold 415,930 Ebit chips at $737 on average but the number of chips dispose ofed last year plummeted to 289,953 at an average price of $304.
“The price of bitcoin tends to have a direct impact on the market marketability for our bitcoin mining machines, in terms of both the price and the quantity, and we expect this trend to continue. Furthermore, the eloquent drop in the bitcoin price is expected to have a negative effect on the value of our bitcoin mining machine inventory and incentivize us to extend credit sales,” said Ebang.
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Image Credits: Shutterstock, Pixabay, Wiki Commons, Ebang
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