Ebang International, a leading Chinese bitcoin mining machine manufacturer based in Hangzhou, Zhejiang Province, is trying to raise up to $100 million through an initial public offering (IPO) in the U.S..
Ebang, founded in 2010, intends to list its shares on either the New York Stock Exchange or the Nasdaq under the ticker symbol “EBON”, according to its SEC filing.
It is a leading application-specific integrated circuit, or ASIC, chip design company and a leading manufacturer of high-performance Bitcoin mining machines, according to the F&S report. Ebang has strong ASIC chip design capability underpinned by nearly a decade of industry experience and expertise in the telecommunications business.
It’s one of the few fabless IC design companies with the advanced technology to independently design ASIC chips, having established access to third-party wafer foundry capacity and a proven in-house capability to produce blockchain and telecommunications products.
Ebang has dedicated their technology and efforts to ASIC applications for Bitcoin mining machines and is a leading Bitcoin mining machine producer in the global market in terms of computing power sold in 2019, according to the F&S report.
It is also one of the earliest contract manufacturers of Bitcoin mining machines in China to own self-developed proprietary ASIC chips. Its Ebit E10 model, launched in December 2017, was the first commercially available mining machine to use 10 nm ASIC chips among major mining machine producers.
Its latest commercialized Ebit E12 series mining machines, which incorporate the most recent iteration of its proprietary 10 nm ASIC chips, are capable of a hash rate of up to 50 TH/s and a computing power efficiency of 57W/TH.
Ebang has completed the design of our 8 nm ASIC chips and 7 nm ASIC chips and is ready to mass-produce our proprietary 8 nm ASIC chips when the market conditions become suitable. It currently focus on developing the proprietary 5 nm ASIC chips and mining machines for non-Bitcoin cryptocurrencies such as Litecoin and Monero.
Ebang had revenues of US$319.0 million and US$109.1 million in 2018 and 2019, respectively. It had a gross profit of US$24.4 million in 2018 and a gross loss of US$30.6 million in 2019. And, its net losses were US$11.8 million and US$41.1 million in 2018 and 2019, respectively.
As of December 31, 2019, there were 5,035 cryptocurrencies in circulation with a total aggregate market capitalization of approximately US$193.4 billion, which represented a 48.5% increase from approximately US$130.2 billion as of December 31, 2018.
The largest cryptocurrency, Bitcoin, accounted for approximately 68.2% of the market capitalization of all cryptocurrencies, or approximately US$131.9 billion as of December 31, 2019.
In recent years, sales of Bitcoin mining machines have increased as a result of the increasing adoption of blockchain technology and interest in cryptocurrencies, particularly when cryptocurrency prices increased.
Sales of Bitcoin computing hardware, the majority of which comprise sales of Bitcoin mining machines, have surged at a CAGR of 61.3% from approximately US$0.2 billion in 2015 to approximately US$1.4 billion in 2019 and are expected to further increase at a CAGR of 24.8% to approximately US$4.3 billion in 2024, according to the F&S report.