This article comes fromBloombergBloomberg

Odaily Translator |

, original author: Zheping Huang

Odaily Translator |

Chinese crypto mining giant Ebang International Holdings Inc. plans to launch an overseas digital asset trading platform this year, as it seeks to expand beyond an industry that tends to fluctuate with the price of bitcoin.

Headquartered in Hangzhou, Ebang International is a manufacturer of bitcoin mining machines. Its chief financial officer, Chen Lei, revealed in an interview that the company's total revenue in 2020 may increase by about 40% after entering the newer business field of helping customers manage data centers. He also said the company could double its revenue to $200 million this year with the launch of the cryptocurrency exchange. Otherwise, Ebang International should have achieved this goal by 2022, Chen Lei added.

On June 26, Ebang International was listed on Nasdaq with the stock code "EBON" and an initial issue price of US$5.23. Assuming that the underwriters do not exercise the over-allotment option of up to 2.8897 million shares, the initial public offering price is 19.2643 million The total issue size is approximately $100.75 million. However, it broke at the opening, with the lowest reported at $3.81.

Ebang plans to use the proceeds to develop new mining machines and expand overseas, including building a regulatory-compliant cryptocurrency exchange outside of China. Chen Lei expects the exchange to initially attract 10% of total transaction fees for crypto trades.

Previously, insiders of Yibang International revealed that the company has set a major expansion plan, which may involve the following aspects:

1. To fill a more unique niche in the cryptocurrency industry by continuing to manufacture bitcoin mining equipment;

2. Plan to build a cryptocurrency trading platform;

3. Build a cryptocurrency mine to achieve diversified operations;4. Explore how blockchain can be applied to "financial services, education, and healthcare industries."Ebang's new exchange will help it cope with bitcoin's wild swings. So far this year, Bitcoin has traded in a wide range between roughly $5,000 and $10,000. Although crypto trading is active in both bull and bear markets, the sharp drop in bitcoin prices will obviously directly drag down the business of mining machine manufacturers like Ebang. according to

Prospectus

, which had revenue of $109 million last year, about one-third of 2018 sales, posted net losses in both 2018 and 2019. The gross profit in 2018 was US$24.4 million, and the gross loss in 2019 was US$30.6 million; the net loss in 2018 was US$11.8 million, and the net loss in 2019 was US$41.1 million.

Bigger rivals such as Bitmain Technologies Ltd. and Canaan Inc. are betting on producing chips in the adjacent field of artificial intelligence to reduce their dependence on the price of bitcoin, but the results are also There are good and bad. Ebang International, founded in 2010 by telecommunications expert Hu Dong, has chosen to delve further into the cryptocurrency space, offering clients the service of hosting and maintaining mining machines in data centers. Ebang is considering applying for a license for its planned crypto exchange in places such as the U.S. or Singapore, or acquiring an existing exchange operator, Chen Lei said.