Bitcoin mining hardware maker Ebang presents a $ 100 million IPO in the United States. With this, the company seeks to raise as much money as possible by listing its shares on the NYSE or Nasdaq, two of the largest stock exchanges in the world.
Ebang International is one of the world’s largest Bitcoin (BTC) mining hardware manufacturers.
Ebang presents a $ 100 million IPO
This company just filed its Initial Public Offering (IPO) in the United States, according to an F-1 form filed with the United States Securities and Exchange Commission (SEC) last Friday.
With this, he seeks to raise enough to rescue his company in the face of a drop in expected sales.
China-based Ebang is one of the leading designers of ASIC chips for Bitcoin mining. And you made 82% of your 2019 revenue by designing these specialized hardwares.
But, thanks to the Coronavirus crisis, and the imminent Halving of Bitcoin that will take place in the coming days. Ebang’s revenue fell sharply to $ 109 million compared to $ 319 million in 2018.
“The coronavirus pandemic has negatively affected the price of Bitcoin. And the lower prices may continue in the short term. And that will negatively affect our operations business and financial condition ”, expressed the Ebang Team.
More than half of last year’s revenue came from the sale of Ebit E12 series machines, followed by Ebit E10 series machines (34%). Both used for Bitcoin mining.
It is worth noting that the number of chips and the average price at which Ebang sold its chips both decreased in 2019 compared to the previous year. What has caused that at the moment they are in a complicated financial situation.
This is Ebang’s second attempt to go public. In June 2018, the company applied for an IPO in Hong Kong. However, it was unable to pass the tight regulations for public offerings on a stock exchange.
There is fear in Ebang’s bosom
At the time, Ebang was reportedly seeking to raise up to $ 1 billion. While currently only about $ 100 million, a significant change.
“The price of Bitcoin tends to have a direct impact on market demand for our Bitcoin mining machines, both in terms of price and quantity, and we expect this trend to continue.”
The company seeks to launch Class A common shares, which have a par value of $ 0.00013 per share, to the public.
But, inside the cryptoverse there is a little fear for said action by the company, since, if they do not get permission to publish the IPO, many experts have said that they do not know how the company could continue.
On the other hand, that Ebang has an IPO of $ 100 million. And if the figure is not reached, it could still be in an even worse situation, since its shares will be on the stock market and could fall even further in the future, devaluing the company and making it an easy target for speculators and even the competition.