Bitcoin mining chip maker Ebang Worldwide Holdings Inc. is searching for to boost as much as $100 million by an preliminary public providing (IPO) within the U.S. The Chinese language firm will promote Class A abnormal shares of nominal worth HK$zero.001 (US$zero.00013) per share if its IPO submitting is authorized.
In a submitting with the U.S. Securities and Change Fee on Friday, Ebang mentioned it intends to listing its shares on both the New York Stock Change (NYSE) or Nasdaq International Market, below the ticker image EBON.
Proceeds of the providing will probably be primarily used for the “growth and introduction of latest mining machines, company branding and advertising actions, and enlargement of abroad enterprise and new companies,” the corporate acknowledged.
Based in 2010, Ebang is without doubt one of the world’s largest bitcoin mining gear makers. It designs and manufactures the Ebit line of ASIC chips utilized in bitcoin mining. In 2019, Ebit chips accounted for 82% of the corporate’s income.
The E12 sequence mining machines with a functionality of a hash fee of as much as 50TH/s and a computing energy effectivity of 57W/TH bought the quickest, adopted by the E10 sequence machines.
Nevertheless, as the worth of BTC tumbled in 2018 and a part of 2019, Ebang’s income took a beating. Its internet loss widened to $41.1 million in 2019 from $11.eight million a 12 months earlier. Its income plunged 66% to $109.1 million final 12 months from $319 million within the earlier 12 months.
Gross sales of chips have slumped together with the typical promoting value. In 2018, Ebang bought 415,930 Ebit chips at $737 on common however the variety of chips bought final 12 months plummeted to 289,953 at a median value of $304.
“The worth of bitcoin tends to have a direct impression in the marketplace demand for our bitcoin mining machines, by way of each the worth and the amount, and we count on this pattern to proceed. Moreover, the numerous drop within the bitcoin value is predicted to have a detrimental impact on the worth of our bitcoin mining machine stock and incentivize us to extend credit score gross sales,” mentioned Ebang.
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Picture Credit: Shutterstock, Pixabay, Wiki Commons, Ebang
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