Over the past year, the prospect of a Bitcoin mining IPO has been put forward in the industry by reputed mining organizations such as Bitmain and Canaan. With both the organizations failing to gain sufficient traction in the market, according to reports, another former player is now trying to test its luck in the water again.
According to an April 24th filing with the U.S Securities and Exchange Commission, Ebang International Holdings, a lead manufacturer of BTC mining equipment is trying its luck for the second time to go public, but with a relatively smaller target that last time. The filing suggested that Ebang had filed for a $100 million initial public offering (IPO) with the SEC.
The filing additionally mentioned that the Chinese Firm will be under the ticker symbol of EBON on the New York Stock or Nasdaq.
Earlier, it 2018, Ebang’s first attempt was rather ambitious as it failed to go public on the Hong Kong Stock Exchange when the company estimated that it would go on to proceed with an IPO estimated to be around $1 billion.
According to the filing, Ebang had generated more than 80 percent of its revenue from making mining equipment in 2019. It earned over $105 million in revenue in 2019 however it was down by 66 percent from 2018. Its loss in 2019 was about $41.4 million in comparison to the profits in 2018.
Following the footsteps of Canaan?
Last year, Canaan Inc. made its debut on NASDAQ, on the 22nd of November, a few days after it was reported that the Bitcoin mining equipment manufacturer raised over $90 million in its U.S IPO. Canaan’s shares, priced at $9.00 per share, had been approved by NASDAQ Global Market it was traded under the symbol ‘CAN.’
Before successfully launching in the US, the mining organization had attempted to go public in Hong Kong, but their plans were dismissed by the regulators as the lawmakers were skeptical and very reluctant to authorize a digital asset company into public listings.
Ebang is currently taking a similar path after failing to receive its clearance from the Hong Kong Exchange back in 2018.
However, it is important to note that Canaan’s endeavours in the United States have been far from profitable, and the mining giant’s shares had plummeted by 40 percent in the 2nd week of December, right after their IPO.
With the ongoing COVID-19 pandemic, Ebang is playing a risky game with its IPO as the timing is far from ideal. The outbreak has resulted in a global disruption of the social and economic activities around the world, raising major question marks against Ebang’s IPO success.