Chinese Bitcoin Miner Makers All Turn to U.S. for IPO, Ebang the Latest after Bitmain and Canaan
Ebang, the world’s third-largest bitcoin mining machine maker, is considering an initial public offering (IPO) in the U.S. after its Hong Kong plan flopped, according to IFR Asia of Thomson Reuters.
Founded in 2010, Ebang Communication started with manufacturing hardware products for the telecommunication industry. The company later moved into the cryptocurrency mining business by rolling out its own Ebit miners in 2018 and rose to compete with Chinese bitcoin mining giant Bitmain (Antminer maker) and Canaan (Avalon maker).
The Hangzhou-based company has made two attempts in Hong Kong but ultimately let its application lapse days ago on June 21. Its IPO hopes in Hong Kong suffered the same fate as its competitors Bitmain and Canaan which have let their IPO application lapse this March and last November, respectively.
The big three bitcoin mining giants sought to go public in Hong Kong after they pocked in considerable profits during the crypto bull run throughout 2017 especially in late 2017 when trading volumes surged and bitcoin reached a high around $20,000. As their financial figures showed in their prospectus, Bitmain making a total of $2.5 billion in revenue in 2017, Canaan raking in $204 million and Ebang $135 million for the year 2017.
But the crypto market turned around since entering 2018. The great volatility in crypto prices raised Hong Kong officials’ concerns over the sustainability of miners’ business models, which resulted in the big three’s IPO hopes dim in this financial hub.
As the crypto market is bouncing back, the trio is pumped to give their IPOs another go, this time in the U.S. soil. Before Ebang, Canaan and Bitmain have been reportedly mulling over IPO in the U.S., which might offer a more favorable investment environment for these cryptocurrency companies.
If the big three were to succeed in the U.S. market, it would be a watershed event in the crypto sphere as it marked the first time major crypto startups take their businesses public to be traded on traditional markets.