The mining chips manufacturer is going to attract $ 100 million investment
One of the largest manufacturers of mining equipment in China, Ebang International has filed an application with the US Securities Commission for an IPO. During the initial public offering, the mining giant is going to raise $ 100 million.
Ebang intends to place A-class stocks on the New York Stock Exchange or on the Nasdaq Global Market. The cost of future EBON stocks will be equal to Hong Kong dollars 0.001, which is equivalent to $ 0.00013 US dollars at the exchange rate at the time of writing.
Ebang International is the largest manufacturer of mining equipment at the moment. In 2019, the company earned $ 109 million, but this is almost 3 times less than the results for 2018, which was the peak for the cryptocurrency market. Despite the still high level of income, the company closed the fiscal year 2019 at a loss of more than $ 30 million.
Last year, most of the company's profits came from sales of E12 and E10 miners. But, due to the bearish trend in the market, both sales and cost of devices continued to fall. For comparison, in 2018, Ebang sold 415,930 devices at an average price of $ 737, and in 2019 only 289,953 chips for $ 304.
“The drop in the price of bitcoin in 2018 and in the first quarter of 2019 led to a significant decrease in sales and the average price of mining equipment. Despite the fact that bitcoin began to recover in the second quarter of 2019, our operating activities are still behind the price of BTC — said representatives of Ebang.
The company noted that the coronavirus pandemic affected not only the cryptocurrency rate but also the operating of Ebang. Due to quarantine measures, many processes had to be canceled, as the supply of necessary materials and equipment was disrupted.