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Ebang, a Chinese Bitcoin ASIC chip manufacturer, is looking to go public with new shares. The company has filed with the U.S. SEC for a $100 million IPO.
Ebang International, one of the world’s largest Bitcoin mining machines producers, announced that it had filed for an initial public offering (IPO) in the U.S.
China-based Ebang is going to raise around $100 million via this IPO. The F-1 form was filed with the U.S. Securities and Exchange Commission (SEC) on Friday, April 24. The company also added it needs to move Class A ordinary shares. The primary value is HK$0.001 (US$ 0.00013) per share.
Both Hong Kong-based AMTD Global Markets Limited and U.S.-based Loop Capital Markets LLC are indicated as joint underwriters for Ebang’s IPO.
One of the Leaders in Chip Integration
Let us also add that Ebang is one of the leading ASIC (application-specific integrated circuit) chips designers and actually has made 82% of its 2019 revenue on designing these chips for bitcoin mining.
Ebang’s revenues, on the other hand, slumped very hard last year to $109 million in comparison to $319 million in 2018. The company also had a gross loss of $30.6 million in 2019 as compared to a gross profit of $24.4 million in 2018.
Ebang, the Ebit bitcoin miner maker, made most of its 2019 revenues (over 53%) from selling Ebit E12 Series machines, followed by Ebit E10 Series machines (34%). It is also important to mention that the number of chips and the average price at which Ebang sold its chips, both fell in 2019 in comparison to the previous year. Also, let’s not forget that during 2018, Ebang sold 415,930 mining chips for the approximate price of $737, while in 2019 it sold 289,953 chips at an average price of only $304.
Risk Factors Depend on the BTC Price, Second Ebang IPO Attempt
Ebang explained that its operations are very much connected to the Bitcoin’s price.
The company stated:
“Our results of operations have been and are expected to continue to be significantly impacted by the fluctuation of Bitcoin price, and in particular, significantly and negatively impacted by the sharp Bitcoin price decrease. The price of Bitcoin tends to have a direct impact on the market demand for our Bitcoin mining machines, in terms of both the price and the quantity, and we expect this trend to continue.”
Also, as per the company, the COVID-19 spread has “adversely affected” the price of the biggest cryptocurrency while the lower prices “may continue in the near term and adversely affect our business of operations and financial condition.”
Be it as it may, this is Ebang’s second attempt to proceed with an IPO. In June 2018, the company was going to hold its IPO in Hong Kong, but it failed to take off. At that time, Ebang was looking to raise $1 billion.