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Chinese ASIC Manufacturer Goes $ 100M IPO

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Chinese ASIC Manufacturer Goes $ 100M IPO

Chinese ASIC Manufacturer Goes $ 100 Million IPO.
CONTENT

  • Chinese ASIC manufacturer issues $ 100 million shares

  • The company presents a line of modern chips for mining

  • Risks remain high due to low MTC prices

International consortium of news organizations developing transparency standards.

One of the largest mining equipment manufacturers Ebang International Holdings Inc. received permission from the US Securities Commission (SEC) to conduct an initial public offering (IPO) in the amount of $ 100 million. The corresponding permission was published on the official website of the SEC.

Chinese ASIC Manufacturer Goes $ 100M IPO

Chinese mining giant goes to IPO

 

As stated in the document, Ebang International Holdings Inc. will conduct an initial placement of ordinary shares of class A and B. The cost of one share is $ 0.001 per share. Securities will be traded on the New York Stock Exchange Nasdaq Global Market under the symbol EBON.

According to the official statement, Ebang International Holdings Inc. is a “developing company” under applicable US securities laws and is eligible for reduced reporting requirements for public companies.

According to research by company F&S, Ebang International Holdings Inc. is a leading specialized chip development company and a leading developer of high performance ASIC bitcoin mining machines. The holding has great ASIC design capabilities backed by nearly a decade of industry and telecom business experience. The company also specializes in the release of blockchain products and telecommunications solutions..

Chinese ASIC Manufacturer Goes $ 100M IPO

 

According to report F & S, we are also one of the first Bitcoin mining machine contract manufacturers in China to own our own ASIC chips. Our Ebit E10, released in December 2017, was the first mass-produced mining machine to use 10nm ASIC chips among the major mining machine manufacturers. Our latest commercial mining machines, the Ebit E12 series, which include the latest iteration of proprietary 10nm ASIC chips, are capable of hashing rates up to 50 TH / s and a computational efficiency of 57W / TH. We have completed the development of our 8nm ASICs and 7nm ASICs and are ready to commercialize our patented 8nm ASICs when market conditions are right. We are currently focusing on developing our own 5nm ASIC chips and mining machines for cryptocurrencies such as Litecoin and Monero..

There are big risks

 

The company representatives do not hide that the profitability of the enterprise directly depends on the cost of bitcoin. As stated in the explanatory note, the mining machines manufactured by Ebang International Holdings Inc. are designed primarily for bitcoin mining. The company’s results will continue to be affected by the cost of military-technical cooperation. In 2018-2019, the company received 96.3% and 82.4% of revenue from sales of mining machines and related accessories, respectively, as well as 2.4% and 14.4% from the provision of hosting services for mining machines, respectively. Any significant decrease in the value of Bitcoin in the future is likely to have a material and adverse impact on the results of operations and financial condition..

If the price of bitcoin or transaction fees on the bitcoin network fall, the expected economic return from BTC mining operations will decrease, leading to a decrease in demand for machines..

As a result, we may need to lower the price of our mining machines. In addition, any shortage of power supply due to government controls or other reasons, as well as any increase in electricity costs, could lead to an increase in the cost of mining bitcoins..

Chinese ASIC Manufacturer Goes $ 100M IPO

The company’s shares will soon appear on the New York Stock Exchange and will be available for purchase.

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