Ebang presents an IPO in order to be saved

The manufacturer of hardware for mining Bitcoin, Ebang presents an IPO of $ 100 million in the united States. With this, the company seeks to raise as much money as possible when quoting their shares on NYSE or Nasdaq, two of the most important bags stock of the world. Ebang International is one of the manufacturers of hardware for mining Bitcoin (BTC) largest in the world.

Ebang presents an IPO of $100 million

This company has just submitted its Initial Public Offering (IPO) in the united States, according to a form F-1 filed with the Securities and exchange Commission of the united States (SEC) last Friday. It seeks to raise enough to rescue your company to a drop in sales expected. Ebang, with headquarters in China, is one of the main designers of ASIC chips for mining Bitcoin. And obtained 82% of their income 2019 when designing these hardwares specialized. But, thanks to the crisis of the Coronavirus, and the imminent Halving of Bitcoin that will be held in the next few days. The income of Ebang fell sharply to $ 109 million compared with $ 319 million in 2018. “The pandemic of coronavirus has adversely affected the price of Bitcoin. And lower prices may continue in the short term. And that negatively affect our business operations and financial condition,” said the Team Ebang. More than half of the income of the past year were due to the sale of machines of the series Ebit E12, followed by machines of the series Ebit E10 (34%). Both used for mining Bitcoin. It is worth noting that, the amount of chips and the average price at which Ebang sold their chips, both decreased in 2019 compared to the previous year. What has caused that currently find themselves in a complicated financial situation. This is the second attempt to Ebang made public. In June 2018, the company applied for an IPO in Hong Kong. However, he failed to pass the railway regulations for the public offerings on a stock market.

There is fear in the breast of Ebang

At that time, Ebang, according to reports, was looking to raise up to a billion dollars. While currently only about $100 million, a significant change. “The price of Bitcoin tends to have a direct impact on the market demand of our machines are mining Bitcoin, both in terms of price and quantity, and we expect this trend to continue.” The company is seeking to launch to the public Class a common shares, which have a nominal value of $ 0.00013 per share. But, within the criptoverso there is a little bit of fear for that action of the company, because, not to get the permission to post the IPO, many experts have said that they do not know how the company could follow. On the other hand, that Ebang presents an IPO of $ 100 million. And not to be achieved by the figure, even could be in a situation even worse, because your actions will be in the bag and could drop further in the future, desvalorizando the company and making it an easy target for speculators and even the competition.

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