The company of manufacture of hardware mining Bitcoin, Ebang, suffered losses of $ 2.5 million. The information was released a few days before the debut of the chinese company on the New York stock exchange.
Given the intention to participate in the above-mentioned bag, north american Ebang presented a report to the Securities and Enchange Commision (SEC). In the same, the company said the balance of their losses during 2020.
In the report, the company ensures that, if the Initial Offering Public (IPO), would reach a value of us $ 800 million. In this way, the equipment manufacturer mining Bitcoin, it would become the second of its kind to enter the Nasdaq.
- 1 Manufacturers of mining equipment Bitcoin in trouble
Manufacturers of mining equipment Bitcoin in trouble
The economic losses on the part of companies dedicated to mining Bitcoin, is not something that suffers only Ebang. Recently, we have known other cases negative as the Canaan Creatives, who announced the problems of sales, with losses of 5.6 million dollars and a lengthy process to fall at Nasdaq.
But the most resonating of the hardware manufacturers of mining Bitcoin, is that of Bitmain. It is the market leader in terms of the magnitude and expansion. This asian company, it has receded greatly in the last few months due to serious internal problems, which are compounded by the impact of the pandemic COVID-19.
Out of the top 5 firms, companies dedicated to mining Bitcoin, the best stop seems to be MicroBT. Driven by a competitive hardware (the M30S+), with a power of 100T and an efficiency below 30W/T, this manufacturer has advanced in the market so awesome.
MicroBT is occupying the spaces that leaves Bitmain. Now, the first becomes a key part of the upstream business of mining Bitcoin in the united States.
In the most recent report of the firm BitMEX, we detail all the details that are now suffering from the manufacturers of ASIC. In this way, the mining Bitcoin and, in consequence, the Hash Rate of the main criptomoneda depend on a few firms that are struggling to overcome the disadvantages.
Compared to Canaan, the other manufacturer of computers mining Bitcoin, the sales of Ebang went out, had the worst results.
Ebang, does not give up
Although Ebang is far from Bitmain and MicroBT in the market, and their equipment are of very low performance, the firm expresses enthusiasm. In the above-mentioned report, expressing his optimism of using the funds that are generated in Nasdaq, to encourage the expansion and development of new equipment of high competitiveness.
Currently, in the ranking of the five dominant companies in the field of mining Bitcoin, Ebang is located in the last position with Innosilicon. Despite this, their goals seem clear: “to strengthen our leadership position and increase our investments in the development of ASIC chips and technology Blockchain”.
Another of the objectives of the manufacturer, expressed in the report, is to expand their business into other areas. Explain that with the expansion into new businesses in the Blockchain, and cryptocurrencies, they will be able to diversify their offer and to win more ground and recognition in the international market.
Must be taken in consideration that went public on $ 800 million seems ambitious. So the opinion of the investigator and analyst CoinDesk, Matt Yamamoto, who describes the ASIC of the company as “very competitive” in comparison with the mining of other companies, which, he says, are “more technologically advanced or efficient in terms of energy”.
2/ With an uncompetitive product offering, Ebang valuation of $800M market cap seems remove ambitious
Ebang has even updated sti risk disclosures to warn that its “competitors’ products may be more technologically advanced or energy-efficient” pic.twitter.com/itlHd3ZDYx
— Matt Yamamoto (@_mattyamamoto) June 18, 2020
What are the losses announced?
As mentioned at the start, the company acknowledged that it had lost about $ 2.5 million during the first quarter of the year. This results in approximate costs in revenue of 6 million dollars.
However, they assert that, despite these significant losses, the income from those first three months of the year, were higher than those obtained during the same period in 2019. Ensure that were positive in more than 6%.
The reasons for the losses suffered Ebang in terms of equipment sale of mining Bitcoin, were similar to those of its competitors. In this case, the disruption of the market as a result of the pandemic of the coronavirus.
Tensions between China and the united States could affect
Tensions between two of the most important economies of the world today, have deteriorated. The main source of problems between China and the united States for aggravating the situation, has been associated with the pandemic of the COVID-19.
All of this has caused uncertainty and nervousness among investors. Recently, the u.s. senate approved a bill that could ban some chinese companies trading on the U.s. stock market.
About this, Ebang expressed its concern. Stated that this type of regulatory laws could cause uncertainty. “The stock price could be adversely and materially affected”.
Importance of Ebang in the market of ASIC
Ebang is a China-based company, whose specialization is the manufacture of hardware ASICs for mining Bitcoin. Its origins date back to the year 2010 when registered as manufacturers, and traders of technological equipment.
The best device generator cryptocurrencies that currently possess, is the EBIT E12 of 44Th/s. The company is taking steps in the area of technology 5G and Artificial Intelligence, as they claim in their official website.
Data to be taken into consideration
For the launch of an IPO, it is necessary to present a balance sheet of the financial status to the SEC.De to participate in the exchange of New Tork, Ebang be worth up to us $ 800 million.By entering its shares on Nasdaq, Ebang was to become the second firm dedicated to mining Bitcoin in doing so, after Canaan Creatives.The position in the market of Bitmain, fell from 75% to 46%. Meanwhile, MicroBT, between 2017 and 2019, he held, from 7% to 35%.In 2017, Ebang fought with Canaan for the second place in the market. Since the month of April, Ebang intend to participate in an IPO.
The information of this content has been taken from reliable sources which are detailed below:
1 – Content is handled in a professional manner on the part of the authors of CriptoTendencia.
2 – external Sources: sec.gov, blog.bitmex.com, bloomberg.com eleconomista.is and miner.ebang.com