Bitcoin Miner Maker Ebang Files for a $100M US IPO

Ebang International Holdings, one of the leading manufacturers of bitcoin mining equipment, is taking another stab at going public, this time farther from home and with a smaller fundraising target.

The Hangzhou, China-based firm aims to raise up to $100 million from an initial public offering (IPO) in the U.S., according to an April 24 filing with the U.S. Securities and Exchange Commission (SEC). The Chinese firm would be listed under the ticker symbol EBON on the New York Stock Exchange or Nasdaq. Loop Capital Markets in Chicago and AMTD Global Markets in Hong Kong are the underwriters on the deal. 

This is Ebang’s second attempt to go public after it failed to do so on the Hong Kong Stock Exchange (HKEX) in June 2018. The target proceeds from that would-be IPO were estimated to be $1 billion. 

Founded in 2010, Ebang is among the earliest China-based hardware companies, such as Bitmain and Canaan Creative, to make application-specific integrated circuit (ASIC) chips and fabless integrated circuits (ICs) for bitcoin mining machines. Chinese miners contribute over 65 percent of the computing power on the Bitcoin network. 

Ebang generates over 82 percent of its revenue from making bitcoin miners. It raked in $109 million in revenue last year, down nearly 66 percent from 2018. Its net loss for 2019 more than tripled to $41.1 million, according to the filing. 

The firm confidentially filed for the IPO in February without disclosing pricing terms, according to Renaissance Capital

Second chances

Ebang is one of several crypto companies that failed to launch an IPO in Hong Kong and later came to the U.S. for another shot. 

Rival bitcoin miner makers Bitmain and Canaan Creative tried to go public on HKEX but their plans fell through because local regulators were reluctant to allow any crypto-related company listings. 

Canaan later managed to launch its IPO on Nasdaq last December. 

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