This Chinese Bitcoin Mining Chip Manufacturer Is Looking to Go Public in Honk Kong
The Chinese Bitcoin mining chip manufacturer Ebang Communication is looking to start selling its shares on the Hong Kong Stock Exchange (HKEX).
The Chinese crypto giant has submitted on 25th June an application for an initial public offering with the HKEX. As long as the document is still draft, we cannot say the level at which the crypto mining chip maker is evaluated and how it will evolve in the near future.
The announcement comes as a confirmation of information published by Reuters in May about BTC mining chip maker plans. According to that announcement, Ebang wanted to be valued as much as $ 1 billion, which in case of success would have become the largest IPO in the crypto sector.
Also, Ebang Communication’s announcement comes as a response to the Canaan Creative’s IPO launch with HKEX, which expected to reach $ 1 billion, according to the filling.
Ebang earned an income of $ 141 million in 2017
Additionally, the document submitted by Ebang provided information about the company’s day-to-day operations. According to the financial statement included in the filing, Ebang earned an income of 925 million yuan or $ 141 million in 2017, 17% higher than in the previous year, while the company’s profit reached 380 million yuan or $ 60 million in 2017, 34% more than in 2016.
Ebang Communication, based in Zhejiang was founded in 2010 as a hardware products maker for the telecommunication sector. Over time, the company has expanded its service portfolio, by producing Bitcoin mining chips and selling them through the Ebit branch launched in 2016 to meet and exceed the standards of BTC mining giants such as Bitmain and Cannan Creative.
An important aspect is that in 2017, 94.6% of Ebang’s revenue was obtained from the sale of Bitcoin mining chips, according to the financial statements. Such a score encouraged the company to continue its involvement in this sector.
By filling, Ebang revealed its plans to launch a 7nm Bitcoin mining chip. As previously reported by Coindoo, GMO Internet based in Japan was the world’s first company to launch a Bitcoin mining device equipped with a 7nm chip.