Bitcoin mining chip maker Ebang International Holdings Inc. is looking for to raise approximately $100 million through a going public (IPO) in the U.S. The Chinese business will offer Class A ordinary shares of small worth HK$0.001 (US$0.00013) per share if its IPO filing is authorized.
In a filing with the U.S. Securities and Exchange Commission on Friday, Ebang stated it plans to note its shares on either the New York Stock Exchange (NYSE) or Nasdaq Global Market, under the ticker sign EBON.
Proceeds of the offering will be mostly utilized for the “advancement and intro of brand-new mining devices, business branding and marketing activities, and growth of abroad organisation and brand-new companies,” the business mentioned.
Founded in 2010, Ebang is among the world’s biggest bitcoin mining equipment makers. It styles and produces the Ebit line of ASIC chips utilized in bitcoin mining. In 2019, Ebit chips accounted for 82% of the business’s profits.
The E12 series mining devices with an ability of a hash rate of approximately 50TH/s and a computing power effectiveness of 57W/TH offered the fastest, followed by the E10 series devices.
However, as the cost of BTC toppled in 2018 and part of 2019, Ebang’s earnings took a pounding. Its bottom line broadened to $41.1 million in 2019 from $11.8 million a year previously. Its profits plunged 66% to $109.1 million in 2015 from $319 million in the previous year.
Sales of chips have actually dropped together with the typical market price. In 2018, Ebang offered 415,930 Ebit chips at $737 typically however the variety of chips offered in 2015 dropped to 289,953 at a typical cost of $304.
“The cost of bitcoin tends to have a direct effect on the marketplace need for our bitcoin mining devices, in regards to both the cost and the amount, and we anticipate this pattern to continue. Furthermore, the substantial drop in the bitcoin cost is anticipated to have an unfavorable result on the worth of our bitcoin mining maker stock and incentivize us to increase credit sales,” stated Ebang.
What do you consider Ebang’s U.S. stock exchange listing aspiration? Let us understand in the comments area below.
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