Ebang Communication, one of the largest Bitcoin mining hardware manufacturers (BTC) in China, today submitted an initial public offering (IPO) request on the Hong Kong Stock Exchange (HKEX) on June 25.
The request confirms a Reuters report in May that said the Zhejiang-based firm was working with advisers in a Hong Kong flotation, which may seek to raise up to $ 1 billion to finance the growth.
Canaan Creative requested an initial public offering on the Hong Kong stock exchange on May 15 this year. Canaan published a preliminary prospectus on Tuesday that reveals that it brought a revenue of 1.3 billion yuan in 2017 and that its net income jumped more than 600% to 361 million yuan. Morgan Stanley, Deutsche Bank AG, Credit Suisse Group AG and CMB International Capital Ltd.
While the price of bitcoin BTC = BTSP fell by 35 percent this year and Beijing has strengthened its control over virtual currency trading, equipment manufacturers are still willing to bet on the search for capital to finance growth and satisfy a still solid demand for their machines.
Canaan estimates it supplies a quarter of the world’s bitcoin blockchain computing power, according to a Reuters interview last month with co-chairman Jianping Kong, who also hopes that China’s drive to promote its domestic chip industry will help boost growth in China. the company.
Ebang withdrew from the National Stock Exchange and Quotations of China, also known as New Third Board, this year after announcing in January that it would seek a quote in Hong Kong.
While many companies promote links to bitcoin and, more commonly, blockchain, the distributed general ledger technology that underpins bitcoin, few of those that focus on cryptocurrency appear on a public list.
In Australia, DigitalBTC was made public through a “backdoor listing” in 2014 when it merged with Macro Energy, an investment group in an agreement that raised A $ 9.1 million (about 5.7 million euros). The company later changed its name to DigitalX (DCC.AX) and changed its focus from bitcoin to fintech software.
Another mining company, Bitcoin Group, withdrew its listing plans in Sydney in 2016 after the local regulator questioned whether it would have enough working capital to be a going concern.
In Canada, Leeta Gold, a mining exploration company, renamed Hive Blockchain (HIVE.V) last summer and partnered with Genesis Mining, based in Hong Kong, at a bitcoin mining facility in Iceland. It has a market capitalization of $ 333 million.
Canaan was valued at around $ 500 million in mid-2017 according to a source quoted by IFR. The valuation of its IPO has not yet been established due to the lack of companies to compare it with the fluctuating prices of cryptocurrencies, according to sources quoted by IFR.
Bitcoin mining equipment manufacturers make computers with special chips that extract coins more efficiently than conventional chips made by companies like Intel.
IPO of Ebang Communication
The presentation includes a financial statement that states that Ebang earned 925 million yuan ($ 141 million) in revenue in 2017, an increase of almost eighteen times since 2016.
The exhibition also suggests that the proportion of Ebang’s revenues generated solely by the sale of Bitcoin miners has increased significantly year-on-year, going from 31 percent in 2015 to 42 percent in 2015, to 94.6 percent in 2017 .
According to Ebang’s IPO request today, the company is working to free Bitcoin miners equipped with next-generation 7nm semiconductor chips, which have already been developed by Japanese technology conglomerate GMO since 2017 and officially launched this spring. .
Ebang competes with Bitmain and Canaan Creative for dominance in China’s lucrative crypto mining hardware manufacturing industry. The latter released its own unaudited results in January that showed a 600-fold increase in its annual net income of 410 million yuan ($ 62 million) in 2017, a figure that dwarfs Bitmain, which reportedly ranged between $ 3 and $ 4 billion in operating profits that same year.
Writer by birth, curious by profession … I learn a little more every day from the cryptocurrency.