Chinese mining giant Ebang intends to raise $100 million

by in Cryptocurrency News

Ebang International investment

Mining equipment manufacturer, Ebang International, has submitted an initial public offer (IPO) to the US Securities and Exchange Commission, during which the company intends to raise up to $100 million, the agency’s website reported.

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The Chinese company intends to place Class A ordinary shares on the New York Stock Exchange or the Nasdaq Global Market under the ticker symbol EBON with a par value of Hong Kong dollar 0.001 ($0.00013).

Today, Ebang is one of the world's largest manufacturers of mining equipment. However, last year the company's revenues decreased almost threefold compared to 2018, amounting to $109 million against $319 million, respectively.

Moreover, 2019 the company closed at a loss of $30.5 million. A year earlier, gross profit was $24.4 million.

In 2019, the lion's share of Ebang's revenue was generated by sales of the E12 and E10 series miners. However, the number of goods sold and the average price of devices steadily declined. In particular, in 2018 the company sold 415,930 chips at an average price of $737, and in 2019 it managed to sell only 289,953 chips for $304.

Ebang representatives added that the coronavirus pandemic negatively affected not only the price of bitcoin but also the company's activities. The latter had to suspend operations in connection with quarantine measures, having also encountered serious problems with the supply chains.