One of the leading Bitcoin (BTC) mining hardware manufacturers in China Ebang Communication in a bid to conform to the regulations of the Hong Kong Stock Exchange (HKEX) has filed its application for an initial public offering (IPO).
Filing of the application
A report came out in May indicating that the Ebang Communication was working with several advisers on a Hong Kong floatand the target was to generate raise about $1 billion which was to be used in funding growth.
But, the filing doesn’t provide details regarding how much Ebangexpects to raise for its IPO. It also leaves people guessing about the precise valuation for the firm. There is a financial statement in the filing which outlines that in 2017 it earned 925 million yuan ($141 million) in terms of the accumulated revenues.
The other suggestion in the filing was that the revenue Ebangcollected after selling Bitcoin miners rose by a significant margin. It was a rise from a figure of about 31% in 2015 to about 94.6 percent in 2017.
One fact that is coming out quite clearly from Ebang’s IPO application filing todayis the fact that the firm is currently working hard so that in a short while it will be able to unveil Bitcoin miners equipped with top-notch 7nm semiconductor chips. Reports show that the Japanese tech conglomerate GMO has been developing them from way back in 2017 and the official launch set to take place this spring.
All along Ebang has been competing alongside Canaan Creative and Bitmain for dominance in the lucrative crypto mining hardware manufacturing industry of China. It was in January that Canaan Creative unveiled its own unaudited results indicating a 600-fold increase in terms of the annual net income which was a figure of about 410 mln yuan ($62 mln) in the previous year. On the other hand, Bitmain reported operating profits of between $3 and $4 for the same year.
It was also disclosed that as of July Canaan Creativewould be kick starting its IPO trading activities on the Hong Kong Stock Exchange. Bitmain’s CEO Jihan Wu is in support of the early backers cashing in funds and to facilitate that he remain open the thought of conducting an overseas IPO.