Bitrazzi
Bitcoin, Cryptocurrency And Blockchain News

Chinese Bitcoin Mining Company Reportedly Plans to Raise $1 Billion in HK IPO

0

Ebang International Holdings Inc., the Bitcoin mining gear manufacturer, is going public, as per an official report submitted to the Hong Kong Stock Exchange (HKEX). The company designs Blockchain Processing Units (BPUs) for cryptocurrency miners. After making 10nm ASIC chips in 2017, their revenue increased by 30 times in 2015.

In May 2018, news websites reported that Ebang was planning to raise $1 billion in an upcoming IPO. However, this information has not been confirmed in the recent report. With 126 employees in Research & Development (R&D), the company has set up offices at Hangzhou, Shanghai, Suzhou and Wuhan. They also raised 978 million yuan (approx. $149 million) in revenue in 2017 alone.

According to the report, some of the risks faced by Ebang Miner, Ebang’s Bitcoin mining division, include “the economic return fluctuations of cryptocurrency mining activities”, “unfavorable changes in the regulatory environment in China and overseas markets”, and managing business development and growth, among others. China has banned cryptocurrencies, ICOs and exchanges, but the country is still home to some of the largest mining companies. Apart from Ebang, Canaan Creative, the second-largest Bitcoin mining hardware creator, also filed an IPO to raise $1 billion in May 2018.

Meanwhile, China Center for Information Industry Development (CCID) published a report under Ministry of Culture that ranked different cryptocurrencies. Bitcoin secured a position at number 17 while EOS was placed at number 1:

  1. EOS
  2. Ethereum
  3. NEO
  4. Stellar
  5. Lisk
  6. Nebulas
  7. Steem
  8. BitShares
  9. Ripple
  10. Qtum
  11. Waves
  12. Cardano
  13. Monero
  14. Ark
  15. Ethereum Classic

EOS has been dealing with software issues since a bug was found by the network. Additionally, crypto pioneer Nick Szabo and Cornell professor Emin Gun Sirer claimed that EOS had centralization problems. “In EOS a few complete strangers can freeze what users thought was their money. Under the EOS protocol you must trust a ‘constitutional’ organization comprised of people you will likely never get to know. The EOS ‘constitution’ is socially unscalable and a security hole,” said Szabo.

Image Credit: Deposit Photos

Comments