Main Bitcoin (BTC) miner producer Ebang has filed for a $100 million preliminary public providing (IPO) with the USA Securities and Change Fee (SEC
Main Bitcoin (BTC) miner producer Ebang has filed for a $100 million preliminary public providing (IPO) with the USA Securities and Change Fee (SEC).
Ebang is in search of to distribute Class A extraordinary shares at a face worth $of 0.00013 per share. The agency plans to record on both Nasdaq World Market or the New York Inventory Change beneath the ticker EBON.
The transfer comes almost two years after the corporate sought to conduct a $1 billion IPO in Hong Kong. After submitting its submitting in June 2018, the providing had been halted by the top of the 12 months.
Ebang faces a downturn in 2019
In 2019, 82% of Ebang’s revenues got here from its application-specific built-in circuit (ASIC) chips and fabless built-in circuits for miners.
Ebang’s annual income was $109 million final 12 months. Declining demand for mining {hardware} amid falling crypto costs resulted in a 66% drop in development from $319 million in 2018.
Gross income swung from $24.Four million in 2018 to $30.6 million in gross losses throughout final 12 months Ebang’s chip gross sales fell from 415,930 at a median value of $737 to 289,953 chips for $304 on common.
Mining {hardware} demand instantly correlates with Bitcoin value swings
Ebang’s submitting asserts that demand for its merchandise is instantly tied to fluctuations within the value of Bitcoin:
Market calls for and unit value of Bitcoin mining machines correlate with the financial returns of Bitcoin mining machines and are primarily affected by the Bitcoin value. An increase within the Bitcoin value will typically enhance the market demand for Bitcoin mining machines, which in flip will permit us to cost our merchandise increased, and vice versa.
“The lower within the Bitcoin value in 2018 and the primary quarter of 2019 resulted in a cloth lower in our gross sales quantity and within the common promoting value of our Bitcoin mining machines,” mentioned Ebang, including:
Though the Bitcoin value began to recuperate within the second quarter of 2019, our operations typically lag behind the rise of Bitcoin value.
Ebang explores altcoin mining chips
The submitting states that Ebang has accomplished the design for its proprietary eight nanometer (nm) and seven nm ASC chips, including that it is able to mass-produce the eight nm models “when the market situations develop into appropriate.”
Ebang can be engaged on the event of “proprietary 5 nm ASIC chips and mining machines” for altcoins, together with Litecoin (LTC) and Monero (XMR).
The corporate states that it intends to start “making use of blockchain know-how into non-cryptocurrency industries, such because the monetary companies and healthcare industries.”
Canaan IPO falls in need of expectations
In November 2019, mining producer Canaan Artistic raised $90 million in an IPO — lower than one-quarter of its $400 million goal.
Since launching on Nasdaq for $9 per share, Canaan’s inventory value has fallen over 50% to commerce for $4.23.