Ebang, a giant of Bitcoin mining with clay feet? – Cryptocurrencies

Bitcoin (BTC) on traditional traditional financial markets: sacrilege? Another BTC mining equipment production company wants to go public on the Nasdaq. Another, because it is not the first and, perhaps or probably not the last to want to take advantage of the fresh fiat, to be raised on a traditional purse. But a quick glance at past financial results leaves one wondering when the ambitions of this new contender …

From Hong-Kong to the United States

Ebang International has officially filed a request for an IPO in the United States.

Ebang, a Bitcoin mining company

This is the second attempt atIPO performed by the company: the first was initiated on the stock exchange of Hong Kong for an amount of $ 1 billion, however, this process had been interrupted.

The company based in China intends to list its shares on the Stock Exchange of New York or to Nasdaq, under the symbol EBON.

Companies AMTD Global Markets Limited based at Hong Kong and, Loop Markets LLC based in the United States, are listed as guarantors of the operation.

IPO at all costs: a good idea?

The consolidated financial statements ofEbang International, reveal that in 2019, the company’s sales declined dramatically from $ 319 million to $ 109 million.

It recorded a net loss of $ 30 million in 2019 while in 2018, it recorded a net profit of $ 24 million.

This loss is linked to the drop in the price of chips ASIC, a drop following a decrease in their demand: the price of a chip went from 737 dollars in 2018 to 304 dollars in 2019.

The fall in the price of Bitcoin would be responsible for this decrease: the company indeed supports – and which is quite logical – the existence of a correlation between the price of Bitcoin and the sale of mining equipment.

To diversify its activities, the company is also exploring the production of chips for mining altcoins, such as Monero ((XMR) and the Litecoin ((LTC).

Ebgan has every interest in learning from the bad experience of Canaan Creative, which is one of its main competitors, to take advantage of the medium and long term of its IPO: since its introduction to Nasdaq, the course of the Canaan Creative lost almost 53% of its value.

Fiat to help producers of equipment used to produce Bitcoin: an interesting anecdote. Cryptophiles and bitcoiners in particular, let’s make peace with the dollar. Bitcoin is still in the system and feeds directly or indirectly on the greenback.

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