Crypto Mining Hardware Maker Ebang Eyes Market Turnaround

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Ebang, the third-largest cryptocurrency mining hardware manufacturer, is reportedly eyeing a market turnaround this year, as it’s set to produce 400,000 mining machines it expects to sell. The company owns 9.2% of the cryptocurrency mining equipment market in terms of sales revenue.

According to local news outlet Yuhang, Ebang has sold about 159,000 cryptocurrency mining machines n 2017, and over 309,000 in the first half of last year. These figures netted the company $304 million in sales revenues.

As the cryptocurrency bear market progressed, its sales seemingly started slowing down. By the third quarter of last year, when bitcoin’s price was getting close to its $3,200 bottom seen in December, the company noted it saw its sales decrease. A section of its prospectus reads:

We experienced significant decreases in revenue and gross profit for the three months ended September 30, 2018 compared to the preceding three months ended June 30, 2018.

The crypto mining hardware producer has, however, set bullish goals for this year, as it’s seemingly looking to sell two and a half times the amount of units it sold in 2017, and about the same number it sold last year.

More information about its moves isn’t currently available, as its co-founder Hu Dong told bi-lingual crypto news outlet 8BTC the company is in a quiet period, in which it can’t release information because of a filing to go public.

Ebang’s Initial Public Offering (IPO)

Ebang is notably looking to go public on the Hong Kong Stock Exchange (HKEX). The company has filed for an initial public offering (IPO) in June of last year, and in December revealed its IPO prospectus is still pending.

The two other dominant players in the cryptocurrency mining hardware sector, Bitmain and Canaan, have also filed to go public. Bitmain, the company that currently leads the sector, has submitted its application in September of 2018, while Canaan – the first to try to go public – terminated its IPO filing process back in November.

The cryptocurrency bear market has notably affected all major industry players. As CryptoGlobe covered, reports suggest Bitmain has suffered $500 million losses in the third quarter of last year.

Per 8BTC, these three companies – Canaan, Ebang, and Bitmain – roughly control 82.5% of the cryptocurrency mining hardware business combined.

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