ASIC Bitcoin Miner Manufacturer, Ebang, to Launch Crypto Exchange Outside China

  • Ebang International Holdings to launch an offshore crypto exchange that can potentially double their income to $200 Million. This, alongside their new consultancy venture which, will supplement their dwindling revenue by 40% in 2020 will work to reduce their overreliance in the ever-volatile cryptocurrency.al

News has now surfaced that Bitcoin equipment manufacturer; Ebang International Holdings intend to unveil a crypto exchange to operate outside China’s jurisdiction. This is in an attempt to generate more revenue for the firm.

The BTC rig manufacturer could see a revenue increment of up to 40% by the end of this year emanating from their new consultancy business that involves managing datacenters for clients. Chief Financial Officer, Chen Lei in an interview with a media outlet remarked at the potential of doubling their earnings to $200 Million with the launch of the crypto exchange. This timeline could potentially be stretched to 2022.

Dwindling Fortunes

Notably, their 2019 revenue of $109 Million was significantly dwarfed by an excess of $300 Million they generated in 2018. Generally translating to net losses in both 2018 and 2019. This is due to their overreliance in the ever-volatile BTC which, has plummeted significantly well below $4000 before stabilizing. The BTC is currently trading at $9154.21 enjoying a market volume of $15911378811 as per this writing.

The Hangzhou-based ASIC rigs manufacturer filed a $100 Million IPO with SEC this year, April. Their share price after, however, shrunk by almost 4% after June 26th IPO to fall below the projected $4. Most of the funds from the IPO would go into the production of next-gen rigs and their overseas expansion campaign.

According to Mr. Chen, almost 10% of the total revenue generated would go to facilitate transaction fees as they seek to set up a regulatory compliant exchange outside China. This was partly due to ongoing purge on crypto activities in China as they march towards realizing their own CBDC, the digital Yuan.

However, it is yet to be seen how the escalating rows between Beijing and Washington will affect Ebang’s access to US capital markets.

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Author: Lujan Odera

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