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Bitcoin Miner Maker Ebang Updates Its Hong Kong IPO Application

Ebang, or producer of Ebit miner, the leading Chinese bitcoin miner manufacturer, has filed its updated application for a Hong Kong IPO on December 20, days before it expires.

The Hangzhou-based company is the third largest cryptocurrency mining equipment maker in the world after Bitmain and Canaan, with a global market share of 9.2% in terms of sales revenue and 10.9% in terms of computing power sold, according to its prospectus.

Prior to it, Canaan, another leading Chinese bitcoin mining equipment maker and also the first of the trio to submit its Hong Kong IPO application, let its application lapse last month when its filing surpassed the regulated 6-month lifespan. It remains unknown why Canaan failed to complete its listing, but the delay has cast a shadow on the prospects for Bitmain and Ebang, the two companies with similar business model that have also filed for IPOs in Hong Kong this year.

Considering this, many industry insiders predicted there was a very high chance that Ebang’s IPO application would lapse like Canaan in such a sluggish market condition, what’s worse, the company was reportedly suspected to be involved in a financial crime. And there were also rumors that HKEX was hesitant to host Bitmain’s IPO because the industry is too volatile.

While in such a context, Ebang carried it off beyond all expectations and has updated its IPO filing on Thursday.

Due to the invalidation of the previous application, we have no access to it and thus cannot compare the difference between it and the new one. According to the updated filing, for the years ended December 31, 2015, 2016 and 2017 and the six months ended June 30, 2018, the company has achieved high gross profit margin at 54.9%, 47.8%, 53.9% and 53.8%, respectively. Its gross profit of the first six months of 2018 reached 1.15 billion yuan ($), an 11-fold increase from the same period in 2017, and more than twice of the whole year of 2017.

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The company’s released financials for 2018 look not bad as outsiders predicted despite the downturn in the segment. The trio has also tried hard to present themselves as chipmakers that not only produce hardware for creating digital money but also serve other industries, such as artificial intelligence and blockchain. Although up to now, turnover from bitcoin-related services still makes up the lion’s share of their revenue.

As it shows on the HKEX website, the applications of Ebang and Bitmain are currently in the active status, while Canaan’s remains inactive.

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