Crypto mining equipment manufacturer Ebang files for an IPO in the US
The company becomes the second mining-centric firm to go public in the US
A China-based firm dedicated to the creation of mining equipment for cryptocurrencies is crossing the ocean to go public and raise additional funds. Ebang International Holdings wants to raise $100 million from its initial public offering (IPO) in the US, and has filed a request to the U.S. Securities and Exchange Commission (SEC) on April 24 to achieve that goal. If everything goes well, Ebang’s symbol in the stock exchange NASDAQ will be EBON.
The underwriters of this new deal were Loop Capital Markets in Chicago and AMTD Global Markets in Hong Kong. This is the second attempt this Chinese company is making to get on a stock exchange, with the first not going very well. It had tried to get listed on the Hong Kong Stock Exchange back in June 2018, but its application was denied.
Ebang International was founded back in 2010 and is one of the first cryptocurrency hardware companies in China, right next to Bitmain and Canaan Creative. Chinese miners dominate the market with at least 65% of the total computer power on the Bitcoin network. Its performance has not been ideal during the last year, its total reported revenue last year was 66% down in comparison to 2018 numbers.
Over 82% of its revenue comes straight from Bitcoin miners and its total revenue last year was $109 million. The company’s net loss has tripled in the last year to $41.1 million. This filing was presented confidentially this past February, and the company did not disclose any details about its price on the stock market if approved.
Only time will tell if Ebang will be accepted for an IPO, just as Canaan did last December. Other exchanges like the Hong Kong Stock Exchange do not accept any crypto-related company in their listings.