Ebang Worldwide Holdings Inc., the Chinese language maker of bitcoin mining , reported a internet lack of $6.96 million in the course of the first six months of this yr, down from $19.07 million a yr in the past, as demand fell because of the coronavirus pandemic.
Income plunged 51% to $11.04 million from $22.35 million beforehand, mentioned the corporate in an earnings launch shared with information.Bitcoin.com.
For the half-year, the Nasdaq-listed Ebang bought a complete zero.25 million terahash per second (TH/s) of Bitcoin hashpower. The determine represents a year-over-year decline of 86% from 1.82 million TH/s bought in the identical interval in 2019.
Shares of Ebang rose zero.three% to $9.88 on the Nasdaq Inventory Change, on the time of writing. The inventory has tanked greater than 30% since itemizing on the alternate in June. Then, it traded at a excessive of $14.95. Ebang reached a low of $three.80 throughout this era as nicely.
Dong Hu, chairman and chief govt officer of Ebang, blamed the loss on the Covid-19-induced world financial recession and Bitcoin’s scheduled provide reduce of Might 11, which reduce earnings for miners and diminished demand for mining tools suppliers. He said:
Measures to include covid-19, such as journey restrictions, necessary quarantines and suspension of enterprise actions have triggered extreme disruptions and uncertainties to our enterprise operations and adversely affected our outcomes of operations and monetary situation. Our chip suppliers have diminished their manufacturing capability because of the affect of the covid-19, leading to our scarcity of uncooked supplies in the course of the first six months of 2020.
For the evaluate interval, Ebang, which makes application-specific built-in circuit (ASIC) chips utilized in bitcoin mining, reported whole working bills of $7.71 million in comparison with $9.60 million within the comparable year-ago interval.
Bitcoin mining producers have seen a decline in demand because of the coronavirus pandemic. Competitor Canaan Inventive reported lately that second-quarter 2020 losses narrowed to $2.four million from $5.6 million within the earlier quarter, however demand additionally slumped resulting from Covid-19.
Ebang’s Dong Hu is now hoping to leverage new crypto exchanges and on-line brokerages which can be anticipated to open quickly in Singapore and Canada. He mentioned that the agency intends to “seize your entire worth chain of the blockchain business” by a mixture of blockchain-capable monetary companies and standard ones.
What do you concentrate on Ebang’s coronavirus-relater losses? Tell us within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This text is for informational functions solely. It’s not a direct supply or solicitation of a proposal to purchase or promote, or a suggestion or endorsement of any merchandise, companies, or firms. Bitcoin.com doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the creator is accountable, immediately or not directly, for any injury or loss triggered or alleged to be brought on by or in reference to the usage of or reliance on any content material, items or companies talked about on this article.