Ebang seeks to distribute ordinary Class A shares at a face value of $0.00013 per share. The company plans to list under the ticker EBON, either on Nasdaq Global Market or on the New York Stock Exchange.
The move comes almost two years after the company sought to conduct an IPO in Hong Kong for $1 billion. The offering had been halted by the end of the year after it submitted its filing in June 2018.
In 2019, 82 percent of Ebang’s revenues came from its application-specific integrated circuit (ASIC) chips and fabless integrated miner circuits.
Annual revenue for the miner manufacturer last year was $109 million. Declining demand for mining hardware in the midst of falling crypto prices resulted in a 66 percent decline in growth in 2018 from $319 million.
Gross profits swung from $24.4 million in 2018 to $30.6 million in gross losses last year Ebang’s chip sales dropped from $415,930 at an average price of $737 to $289,953 chips at an average price of $304.
Ebang’s filing asserts that demand for its products is directly linked to Bitcoin price fluctuations:
“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.”
“The decrease in the Bitcoin price in 2018 and the first quarter of 2019 resulted in a material decrease in our sales volume and in the average selling price of our Bitcoin mining machines,” said Ebang, adding:
“Although the Bitcoin price started to recover in the second quarter of 2019, our operations generally lag behind the increase of Bitcoin price.”
Ebang explores altcoin mining chips
The filing states that Ebang has completed the design for its proprietary 8-nanometer (nm) and 7-nm ASC chips, adding that it is ready to mass-produce the 8-nm units “when the market conditions become suitable”.
Ebang is also working on developing “proprietary 5-nm ASIC chips and mining machines” for altcoins, including Litecoin (LTC) and Monero (XMR).
The company states that it intends to begin “applying blockchain technology into non-cryptocurrency industries, such as the financial services and healthcare industries.”