Ebang Seeks $125 Million US IPO Despite Losses for Months

Chinese Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term miner maker Ebang has revised its prospectus with the Securities and Exchange Commission (SEC), revealing more details of its initial public offering (IPO) attempt.

According to Wednesday’s filing, the Hangzhou-based company is expecting to offer 19.32 million shares at a price range of $4.50 to $6.50 - the hard cap has been increased to around $125 million from the previous proposal of $100 million.

As mentioned earlier, Ebang is approaching Nasdaq to list its shares under the symbol “EBON”.

The company has also on-boarded Prime Number Capital as an additional underwriter along with existing Hong Kong-based AMTD Global Markets Limited and U.S.-based Loop Capital Markets.

The recent filing came following Ebang’s original approach to the SEC for an IPO in April. The Bitcoin mining hardware manufacturer also tried to list its shares in Hong Kong, raising $1 billion, but failed miserably.

Approaching the market with very poor numbers

Ebang also disclosed its financial conditions in the recent filing, showing losses and negative cash flows for months. The company had net losses of $11.8 million and $41.1 million in 2018 and 2019, respectively, and might not turn profitable in the near future. Even in the first quarter of 2020, the company booked $2.5 million in losses, despite the rush for new ASICs following Halving Halving Halving represents a phenomenon when crypto mining rewards are cut in half. Cryptocurrency networks that run on Proof-of-Work (PoW) algorithms require the computers (nodes) that uphold them to solve complex equations that are used to confirm transactions. This process is known as mining. In exchange for their work, these nodes are given rewards in the form of the crypto token that belongs to that particular network. For example, on the Bitcoin network, halving happens regularly at preset interva Halving represents a phenomenon when crypto mining rewards are cut in half. Cryptocurrency networks that run on Proof-of-Work (PoW) algorithms require the computers (nodes) that uphold them to solve complex equations that are used to confirm transactions. This process is known as mining. In exchange for their work, these nodes are given rewards in the form of the crypto token that belongs to that particular network. For example, on the Bitcoin network, halving happens regularly at preset interva Read this Term.

The company highlighted that the price volatile and sharp decrease of Bitcoin is to blame for its red figures. For the last quarter’s numbers, it blamed the “significant decrease in certain non-recurring local government’s tax rebates.”

The revenue of the company in Q1 2020 touched $6.4 million, a slight increase from the same figures for the same quarter in the previous year. This was due to an increase in the average selling price and sales volumes of its Ebit mining machines.

Canaan became the first Bitcoin mining hardware manufacturer to list its stocks in a US exchange, but the company is performing very poorly due to the declining investor interest in such companies.