On Tuesday (June 26) Ebang Communication, the China-based Bitcoin mining hardware manufacturer which is the world’s third-largest producer of Application-Specific Integrated Circuit (ASIC) chips announced its intentions of going public on the Hong Kong Stock Exchange (HKEX).
Bitcoin mining hardware manufacturer Ebang Communication filed to go public on the Hong Kong Stock Exchange earlier today (Tuesday June 26). The Zhejiang-based company also filed an application to hold its IPO (Initial Public Offering) on the HKEX, the popular abbreviation for the Hong Kong Stock Exchange. Ebang Communication is the third-largest producer in the world of ASIC (Application-Specific Integrated Circuit chips) which are integral for Bitcoin mining.
This news was first broken by regional industry publication 8btc, which obtained a copy of the firm’s Chinese-language prospectus. Global news network Reuters had previously reported on Ebang’s intentions of raising around $1 billion through an IPO.
Ebang Communication was founded in Zhejiang, China in 2010, and was initially setup to construct hardware products for China’s vast telecommunication industry. Somewhat radically, in 2016 Ebang switched focus and moved into the cryptocurrency mining business. Chinese Bitcoin mining giant “Bitmain and Cannan Creative” were the main competition, but Ebang established itself by launching its own Ebit miners.
By January 2017, Ebang was displaying a 600% increase in its annual net income of $62 million The company claims it has an 11% share of the all-important Bitcoin ASIC market, and it is looking to expand upon that figure once it releases its “still-in-production” 7nm chips.
7nm chips are significantly more efficient than the current market-leading 10nm chips, developed and released by Samsung last year. Japan-based GMO Internet are the other company which has unveiled 7nm chips.
Ebang claims it has enjoyed a significant growth in revenue since 2015. In 2017, Ebang brought in $142 million of revenue, up considerably from $4.5 million in 2015. The company also posted a $59 million profit in 2017, a vast improvement of just $1.7 million the previous year.
Ebang is the second major Bitcoin mining firm to file to go public in Hong Kong, following Canaan Creative, who filed last month.