China-based Ebang Holdings has filed a $100 million IPO prospectus with the U.S. Securities and Exchange Commission (SEC), becoming the third Bitcoin mining equipment maker after Bitmain and Canaan to attempt a public offering.
Bitcoin miner to public firm
Ebang states IPO returns will majorly serve towards product diversification, company expansion, and collateral for credit facilities with investment banks. No dividend payouts shall be offered to investors, at least shortly. Apart from its blockchain business, the firm has created a telecommunications division which accounts for a paltry 3 percent of annual revenue.
As per documents, the firm recorded revenues of $100 million in 2019, a 63 percent drop from the reported $319 million in 2018. The firm lost $30 million in 2019, compared to a profit of $24 million in 2018. Based on these financials, it’s difficult to foresee a post-IPO increase in share prices.
Ebang leads Bitcoin miner production ahead of rivals Bitmain and Canaan, as per a Frost and Sullivan report quoted on the filing. The firm sells ten miners varied by computing specifics, with the cheapest priced at $300 and the priciest — promising a 44 TH/s output – at $1930. Read More...