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Bitcoin Miner Maker Ebang Increases IPO Fund-raising Amount, Exceeding That of Canaan

Ebang, or producer of Ebit miners, the leading Chinese bitcoin mining hardware manufacturer, is reportedly updated its prospectus on June 17.

The updated prospectus announced its revenue in the first quarter of 2020, as well as revealing the IPO fund rises from $100 million to $125 million. Before that, another Chinese bitcoin miner maker Canaan raised $90 million when it went public. In addition, Prime Number Capital is added as underwriters, whose company’s valuation is about $600-$900 million.

According to the updated prospectus, Ebang plans to issue 19323600 shares, the price ranging from $4.5 to $6.5, with a scale of $86.94 million to $125 million. Ebang’s increase in the number of funds raised seems to indicate that the roadshow situation is better than expected.

On May 13th, Canaan’s stock reached $5.99, but has since tumbled down to its lowest level yet, closing at $1.98 on June 14th, according to 8btc’s previous report. But fidelity, one of the world’s largest investment managers, is increasing its stake in Canaan.

By March 31, fidelity has increased 2338558 shares of Canaan, holding 1.49% of Canaan’s total, and is likely to continue to increase its holdings. In addition, the Renaissance foundation purchased 17400 shares of Canaan.

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Many traditional institutions are looking for high-quality cryptocurrency targets, which may benefit Ebang. On the other hand, the listing of Bitmain, Whatsminer in the future which have a higher market share, may lead to a greater pursuit in the capital market.

According to the prospectus of Ebang, 7nm and 8nm chips have been successfully designed and completed by it. At present, Ebang focuses on the development of proprietary 5nm ASIC chips and mining machines for non-bitcoin cryptocurrencies, such as Litecoin and Monroe.

In late April, Ebang submitted a prospectus, which shows that Ebang’s revenues in 2018 and 2019 were $319 million and $109 million, respectively. Gross profit in 2018 was $24.4 million and gross loss in 2019 was $30.6 million. Net losses in 2018 and 2019 were $11.8 million and $41.1 million, respectively.

In 2019, Ebang purchased the largest amount of ASIC chips from Samsung among the peers, accounting for 43.8% of the total procurement of raw materials and subcontracted services for production purposes.

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