Major Bitcoin Mining Hardware Manufacturer Files for IPO in Hong Kong

Major Bitcoin Mining Hardware Manufacturer Files for IPO in Hong Kong

One of the leading bitcoin mining hardware manufacturers in China, Ebang Communication, has filed an application for an IPO (Initial Public Offering) in Hong Kong, on Monday, June 25.

The application filed with the HKEX (Hong Kong Stock Exchange) confirms the Reuters report published in May, that Ebang Communication was working with some advisers on a Hong Kong float, allegedly seeking to raise as much as whopping $1 billion to fund its growth.

The filing today does not reveal any information regarding the amount the Zhejiang-based firm is seeking to raise for its IPO, nor does it give details for valuation of the firm.

Although there’s no precise valuation of the firm, the filing includes a financial statement according to which, the firm earned $141 million in revenue in 2017 – almost 18 times more than its revenue in 2016.

According to the firm’s filing with the HKEX today, it is currently in the process of working to release its new bitcoin miners equipped with 7nm semiconductor chips, which have been in the development process since 2017 by the Japanese conglomerate GMO and launched earlier this year.

The firm usually competes alongside Canaan Creative and Bitmain for dominance in the country’s cryptocurrency mining hardware manufacturing industry. The former made its unaudited results public this January. According to the published results, the firm saw a six hundred-fold increase in its annual net income of $62 million in 2017. Nonetheless, the figure was dwarfed by the latter, Bitmain, which made somewhere between $3-4 billion in operating profits in 2017.

In May, Canaan Creative confirmed its plans to begin trading its IPO on the HKEX as early as July this year. Some sources also revealed that the firm is also seeking to raise around $1 billion.

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