China’s Ebang Bitcoin Mining Manufacturer Files for IPO in Hong Kong

One of China’s largest bitcoin mining manufacturers on Monday filed an application for an initial public offering (IPO) with the Hong Kong Stock Exchange in a deal that could become one of the largest the blockchain industry has ever seen.

Ebang Seeks IPO

The application for IPO was filed by Ebang Communications, one of China’s largest crypto miners. The Zhejiang-based company is looking to raise $1 billion for various growth initiatives, though the IPO application did not specify how much it intends to raise through the public offering.

According to the filing, Ebang generated 925 million yuan (roughly $141 million U.S.) in revenue last year. The company earned a fraction of that amount in 2016. The filing also showed that Ebang’s mining-only business has grown significantly since the cryptocurrency bull market took off in early 2017. Revenues generated solely from bitcoin mining chips and related hardware jumped to 95% in 2017 compared with 31% two years earlier.

The company is looking to offer miners next-generation hardware in the form of 7nm semiconductor chips, which officially launched earlier this year.

Race for Blockchain Dominance Grows

Ebang isn’t the only mainland blockchain company looking to fuel expansion through a public offering. Last month, it was reported that Canaan Creative – China’s no. 2 bitcoin miner – is planning to launch an IPO later this year.

Canaan submitted its IPO application to the Hong Kong Stock Exchange May 15 after previously short-listing the United States for its public sale. The Beijing-based miner is planning to raise between $1 billion and $2 billion.

China has implemented a blanket ban on cryptocurrency trading and recently introduced sweeping restrictions on bitcoin miners, but this hasn’t stopped manufacturers of mining chips from building a lucrative business. The country’s crypto mining business is dominated by just three companies: Ebang, Canaan Creative and Bitmain.

Bitmain generated between $3 billion and $4 billion in operating profit last year. In the case of Canaan, the company in January reported a 600-fold increase in annual net income.

In related news, CCN reported Monday that BTCC, formerly one of China’s ‘big three’ cryptocurrency exchanges, has agreed to sell 49% of its bitcoin mining pool. The stake in BTCC Pool Limited was purchased by Hong Kong-based Value Convergence Holdings Limited in a non-legally binding agreement. The memorandum of understanding will see Value Convergence raise $18.73 million to complete the proposed acquisition.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi