Cryptocurrency mining hardware manufacturer Ebang International Holdings is looking to raise up to $100 million from an initial public offering (IPO), according to a filing with the Securities and Exchange Commission (SEC).
The Hangzhou, China-based firm would be listed on the New York Stock Exchange or on Nasdaq, under the EBON ticker symbol. Loop Capital Markets and AMTD Global Markets are to be the deal’s underwriters, according to the filing.
The manufacturer of cryptocurrency mining hardware has attempted to go public before, as in 2018 it tried be listed on the Hong Kong Stock Exchange (HKEX) while looking to raise up to $1 billion via an initial public offering. Ebang ended up allowing its application to lapse.
Ebang was founded in 2010, and is among one the largest cryptocurrency mining hardware manufacturers, next to rivals Bitmain and Canaan. These make application-specific integrated circuit (ASIC) chips and fabless integrated circuits (ICs).
The Hangzhou-based firm generated over 82% of its revenue last year making these crypto miners, raking in $109 million in 2019. The figure was down 66% from 2018, and saw it incur a net loss of $41.1 million. In the filing, Ebang noted that next month’s bitcoin halving, regulatory changes in China, and the potential price moves associated with the COVID-19 outbreak could affect its revenue. Referring to March’s market crash the firm wrote:
The significant drop in the Bitcoin price is expected to have a negative effect on the value of our bitcoin mining machine inventory and incentivize us to increase credit sales.
Bitmain and Canaan, it’s worth noting, also tried to go public on the Hong Kong Stock Exchange in the past, but their plans fell through because local regulators didn’t allow crypto-related company listings. Canaan, later on, launched its IPO on Nasdaq, raising $90 million.