Ebang BTC Mining Equipment Manufacturer to Go for IPO

Ebang raised 925 million yuan ($141 million) in revenue in 2017 alone, marking a 17-time year-on-year growth compared with 2016
25 June 2018   1601

A major Chinese manufacturer of mining equipment Ebang Communication is planning to become a public company, whose shares will be traded on the Hong Kong Stock Exchange (HKEX). This is reported by CoinDesk.

The company filed a preliminary application for an initial public offering (IPO) on the HKEX. It is not yet known how much Ebang is valued, and how much it plans to attract during the IPO.

For the first time, Ebang's plans to enter the IPO became known in May this year. Then it was reported that the company is actively consulting on this issue, and is also going to raise $ 1 billion.

Note that the financial performance of the company Ebang demonstrate more than a confident growth. So, over the past year, the company's revenue increased 17 times, amounting to 925 million yuan ($ 141 million). Compared to the previous period, net profit in 2017 increased by 34 times, amounting to 380 million yuan ($ 60 million).

In 2017, 94.6% of total revenue was sold by bitcoin miners. It is noteworthy that in 2015 and 2016 these indicators were 31% and 42% respectively.

Founded in 2010, Ebang Communication originally specialized in products for the telecommunications industry. After a while the company reoriented to the mining industry. The first miners called Ebit were released in 2016. Currently, Ebang is engaged in the production of bitcoin-miners based on 7-nm chips.

Layer1 to Receive $50M Investments

These investment helped the startup to reach $200M market value and and will be used to enter mining market
16 October 2019   78

Layer1, backed by the Digital Currency Group (DCG) raised $ 50 million from a number of well-known venture capitalists, including PayPal co-founder Peter Thiel.

According to The Block, thanks to the successful closure of the Series A financing round, the company's market value reached $ 200 million.

Initially, the company focused on supporting the ecosystem of confidential cryptocurrency Grin. However, now the San Francisco-based firm intends to focus on bitcoin mining and plans to compete with Chinese miners over time.

We expect our chips to be competitive for at least eight years now...you want to have your own chips in hand. We also have our own electricity substations: effectively that's as close you can get to owning your own power plan.

Alexander Liegl

CEO, Layer1

To implement this plan, the company acquired land in Texas for the construction of substations, entered into a partnership with a Beijing manufacturer of semiconductors and built its own infrastructure for cryptocurrency mining. Ligl added that Layer1 intends to become a vertically oriented company that controls every element in the mining business process chain.

The company also intends to enter the lending and crypto derivatives markets.