The spread of coronavirus has resulted in catastrophic consequences all across the planet, with several companies and organizations feeling the pinch. Cryptocurrency companies have also begun to diversify their portfolios in order to ensure their survival in the coming months.
Chinese cryptocurrency Miner Producer Ebang International Holdings Incorporated was the latest company to offer new services in the midst of a raging pandemic. Ebang claimed that an offshore exchange for digital assets would be launched in the third quarter of 2020 with the hope of expanding out of the Bitcoin ecosystem.
According to sources close to Ebang, the move would help dabble in a sector that was independent of the highs and lows of Bitcoin. Mining companies like Ebang generally depend on price variations for large cryptos like Bitcoin, which is not always a sustainable model. These companies only make a profit when the price of crypto is rising on a bullish ramp.
At the time of the press, Bitcoin traded for $9222.4 with a total market cap of $169.88 billion. A 0.65 percent price increase over the previous 24-hour lifted the daily trading volume to $15.99 billion. This stagnant price increase does not make much of a profit for a large company like Ebang Holdings. New reports on the Hangzhou-based rig maker showed that the new expansion rates could increase the revenue stream by 40%.
Ebang also plans to set up a crypto exchange outside the mainland of China, a road map for which it is still under construction. In a recent interview, Ebang Chief Financial Officer [CFO] Chen Lei stated that foreign exchange could contribute at least 10% to the current revenue stream. Despite new developments, Ebang registered a 14 percent drop in its IPO pricing, raising more than $100 million.
The company reiterated that its services would help counter Bitcoin’s volatility in the wake of the currency’s wild move over the past year. Ebang recorded gross revenue of $109 million in 2019, which is expected to exceed that benchmark by 2020. This predicted spike comes at a time when rivals like Bitmain and Canaan were focusing on a blend of AI and physical technology.
Ebang International also plans to list Nasdaq under the EBON symbol. AMTD Global Markets, Loop Capital Markets and Prime Number Capital are proposed to act as project lead managers.