Chinese mining equipment manufacturer Ebang will be listed on the NASDAQ exchange on June 26, in a bid to raise as much as $125 million in an Initial Public Offering (IPO), according to local media reports. Blockstream Chief Strategy Officer Samson Mow also tweeted a screenshot of an invitation to an Ebang event in Hangzhou.
Should the company get listed, it would be the second mining company to get listed on the exchange, after Canaan held its IPO in November 2019. Ebang had attempted to launch a $1 billion IPO in Hong Kong to no avail. The company then filed for a $100 million IPO with the United States Securities and Exchange Commission (SEC) in April 2020.
A successful IPO would put the company’s valuation at roughly $800 million. Speaking of its market potential in the filing, Ebang noted the correlation between mining equipment and market swings,
Market demands and unit price of Bitcoin mining machines correlate with the economic returns of Bitcoin mining machines and are primarily affected by the Bitcoin price. A rise in the Bitcoin price will generally increase the market demand for Bitcoin mining machines, which in turn will allow us to price our products higher, and vice versa.
Although sales volumes have increased, the company reported a $2.5 million loss in Q1 2020.
Mining companies have been attempting to launch IPOs in the United States. Canaan’s IPO was met with a less than stellar reception, raising $90 million - 75% lower than was expected. BitMain, the world’s largest Bitcoin mining equipment manufacturer, confidentially filed for an IPO in October 2019, but there has been no update on the matter.