Bitcoin mining manufacturer Ebang seems unfazed by BTC’s price fall; moves forward with IPO plans.
Ebang International has filed papers to go public, leaving observers to speculate, “Why now?”
Some see the company’s filing to hold an initial public offering as being a bullish sign for the crypto space. On that same note, others think the move reflects the Bitcoin mining manufacturer trying to make money while it can in light of Bitcoin’s mighty fall from its December highs that neared $20,000.
It hasn’t recovered since.
Can’t beat ‘em, join ‘em
Ebang reportedly filed an IPO prospectus with the Hong Kong Stock Exchange.
The filing came as cryptos are just recovering from their most recent fall. Over the weekend, Bitcoin tanked below $6,000, which was a low the crypto hadn’t seen this year.
Interestingly, Ebang’s IPO filing comes on the heels of a similar move by its rival Canaan Inc.
Also, it is being reported that Bitmain Technologies is also planning an IPO.
Observers note that Ebang seems unfazed by the challenges presented by going public now.
One of those challenges relates to the slumping returns crypto miners are experiencing, which are making mining, and therefore Ebang’s product offerings, less appealing.
No nitty, gritty details
Ebang’s IPO filing doesn’t include many of the financial details most investors are accustomed to seeing. Instead, the prospectus provides information about its financial health.
This includes its revenues being up 715% in 2017 to $1.8 million. Also, its gross profit margin grew 813% in 2017.
The gross profit margin increased to 53.9% in 2017 from 47.8% in 2016.
Reportedly, the Bitcoin mining machine market is Ebang’s main business, making up 94.6% of the company’s total revenue last year.