Bitcoin mining chip maker Ebang Worldwide Holdings Inc. is looking for to boost as much as $100 million by an preliminary public providing (IPO) within the U.S. The Chinese language firm will promote Class A bizarre shares of nominal value HK$0.001 (US$0.00013) per share if its IPO submitting is accepted.
In a submitting with the U.S. Securities and Exchange Fee on Friday, Ebang stated it intends to record its shares on both the New York Inventory Exchange (NYSE) or Nasdaq International Market, beneath the ticker image EBON.
Proceeds of the providing can be primarily used for the “development and introduction of new mining machines, corporate branding and marketing activities, and expansion of overseas business and new businesses,” the corporate said.
Based in 2010, Ebang is likely one of the world’s largest bitcoin mining gear makers. It designs and manufactures the Ebit line of ASIC chips utilized in bitcoin mining. In 2019, Ebit chips accounted for 82% of the corporate’s income.
The E12 collection mining machines with a functionality of a hash price of as much as 50TH/s and a computing energy effectivity of 57W/TH bought the quickest, adopted by the E10 collection machines.
Nonetheless, because the price of BTC tumbled in 2018 and a part of 2019, Ebang’s income took a beating. Its web loss widened to $41.1 million in 2019 from $11.eight million a 12 months earlier. Its income plunged 66% to $109.1 million final 12 months from $319 million within the earlier 12 months.
Gross sales of chips have slumped together with the typical promoting price. In 2018, Ebang bought 415,930 Ebit chips at $737 on common however the variety of chips bought final 12 months plummeted to 289,953 at a mean price of $304.
“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. Furthermore, the significant drop in the bitcoin price is expected to have a negative effect on the value of our bitcoin mining machine inventory and incentivize us to increase credit sales,” stated Ebang.
What do you concentrate on Ebang’s U.S. stock market itemizing ambition? Tell us within the feedback part beneath.
Picture Credit: Shutterstock, Pixabay, Wiki Commons, Ebang
Disclaimer: This text is for informational functions solely. It isn’t a suggestion or solicitation of a suggestion to purchase or promote, or a suggestion, endorsement, or sponsorship of any merchandise, providers, or firms. Fintech Zoom doesn’t present funding, tax, authorized, or accounting recommendation. Neither the corporate nor the writer is accountable, immediately or not directly, for any injury or loss prompted or alleged to be brought on by or in reference to using or reliance on any content material, items or providers talked about on this article.