Bitcoin recently slumped below $6,000 reaching its lowest value in a little over eight months. This has sparked a number of reactions as investors and other members of the digital coin’s community debate over allegations of price manipulation.
Bitcoin’s woes do not stop there though. The Chinese government also recently issued a blanket ban on cryptocurrency trading followed by a restriction on bitcoin miners. Is this enough to stop bitcoin’s rise?
Well, amid all the talk of bitcoin’s price drops, the blanket ban, and theories of its ultimate downfall, Ebang Communication, one of China’s largest bitcoin mining chip makers, has opted to ignore all the buzz as it seeks to go public on the Hong Kong Stock Exchange (HKEX). According to a Reuters report, EBang Communications filed an application for an initial public offering (IPO) with the HKEX on June 25. However, the application is still a draft and thus the valuation of the Zheijang-based company is still definitively clear.
Even so, the application itself confirms a May report that claimed the company was working with advisors on Hong Kong float and aimed at raising as much as $1 billion to fund its growth. The filing also includes a financial statement that state that Ebang Communications earned 925 million yuan ($45 million) in revenue last year – 2017 was indeed a great year for the company as the revenue was nearly eighteen times as much as what they got in 2016.
In addition to the revenue statistics, the filing further suggested that the proportion of the bitcoin miner manufacturer’s revenue was generated solely from the sale of the bitcoin miners has also gone up significantly year-on-year. To put this into perspective, the revenue generated from the sale of bitcoin miners rose from 31 percent in 2015 to 42 percent in 2016 and then to a staggering 94.6 percent in 2017.
Founded in 2010, Ebang Communications kicked off its operations as a manufacturer of hardware products for the telecommunication industry. The company opted to enter the cryptocurrency mining in 2016 when they launched the Ebit miners, a product that was intended to compete directly with two other Chinese bitcoin mining market leaders, Cannan Creative and Bitmain.
The company’s IPO application also came with some exciting news for bitcoin miners. As it turns out, Ebang is on the verge of releasing its next generation of bitcoin miners that will be equipped with the latest 7nm semiconductor chips. These next-generation 7nm chip have been in development since 2017 and were just recently launched by GMO, a Japanese tech conglomerate.