Chinese mining company Ebang will be listed on the Nasdaq this week
Ebang, China’s Bitcoin mining manufacturer (BTC), is expected to trade on the global Nasdaq market under the EBON token later this week, becoming the second largest cryptomining company listed in the United States.
According to a report by Chinese news channel Blockbeats, Ebang will be officially listed on Friday, June 26. In addition, Blockstream’s chief strategist, Samson Mow, tweeted a screenshot of an invitation to an Ebang event at a hotel in Hangzhou, where the company is based, which also begins on Friday.
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Ebang aims to raise $125 million, expanding on the original goal
Ebang submitted an initial public offering of USD 100 million (IPO) to the US Securities and Exchange Commission in April this year. The company decided to enter the US stock market after an unsuccessful attempt to conduct a USD 1 billion IPO in Hong Kong in 2018.
On June 17, the company filed its last application with the SEC, choosing the Nasdaq as its stock exchange.
The Chinese mining operator intends to raise USD 106 million by putting 19.3 million shares up for sale at a price between USD 4.50 and USD 6.50, which means it now intends to raise up to USD 125 million, while the initial proposal was limited to USD 100 million. If the IPO is successful, Ebang’s market value could approach USD 800 million.
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Remarkably, Ebang’s sales have been declining since 2018. In 2019, Ebang’s annual revenue was $109 million, a 66% drop in growth from $319 million in 2018.
According to the latest data presented, 2020 will not necessarily be the year of Ebang’s return, even though market conditions are generally better. The company reported a net loss of USD 2.5 million in the first quarter of the year, and blamed the „significant decrease in certain non-recurring local government tax refunds“, although it noted that its sales volume had increased since 2019.
„This is great for the Bitcoin mining industry, because as more ASIC manufacturers become public, we have more transparency and accountability,“ Mow told Cointelegraph, noting that Ebang is „one of the most reliable manufacturers in this space“ in his experience.
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The initial public offerings of other Bitcoin mining companies
In November 2019, Canaan became the first major Bitcoin Investor mining company to be listed on the U.S. stock exchange, raising $90 million by selling 10,000,000 shares at $9 each in its IPO, more than 75% less than originally expected. In addition, its shares have since plummeted, as they are now trading below USD 2.
Another Chinese mining giant, Bitmain, quietly filed a Deutsche Bank-backed application for an SEC IPO towards the end of 2019, although no details have emerged since then.