Bitcoin mining hardware manufacturer Ebang International Holdings has become the latest mining chips company planning to get listed on a major stock exchange via an Initial Public Offering (IPO) in the United States.
Ebang Files $100M IPO In The US
The China-based firm has applied with the US Security and Exchange Commission (SEC), so it can raise up to $100 million from investors through an IPO in the country.
Ebang is now expected to face questioning from the securities regulators to be deemed worthy of providing its offering to investors. The company has already submitted the Form F1, a mandatory certificate that foreign companies must provide before they can list in the US securities markets, to the SEC.
If the application is approved, Ebang plans to list on either NYSE or tech-heavy NASDAQ with the symbol EBON.
This is not the first time Ebang is filing for an IPO as a foreign company. In 2018, the company submitted its application to conduct a $1 billion IPO in Hong Kong. The company could not proceed with its plan as the end of the year halted the offering.
Ebang Faces Massive Decline In Sales
Ebang is the third-largest manufacturer of cryptocurrency mining equipment, after Bitmain and Cannan. As of 2019, 82% of the company’s revenue was generated from the sales of its application-specific integrated circuit (ASIC) chips and fabless integrated circuits (IC) for Bitcoin mining machines.
The company generated $319 million as annual revenue in 2018. However, due to the prolonged bear market, Ebang’s revenue declined to $109 million the following year, which represents a 66% drop in 2019. The company’s sales volume dropped from 415,930 chips to 289,953 chips, with the price also falling from $737 to $304 on average.
Just like Ebang, Bitman and Canaan have also filed for IPO in the US. While Canaan is already trading on NASDAQ since November 2019, Bitmain is still struggling with its application after a failed attempt with its Hong Kong IPO filing.