Ebang, a Bitcoin mining equipment manufacturer, intends to launch a cryptocurrency exchange in the Q1 of 2021. The decision comes as a part of the Hangzhou-based company’s strategy to expand its revenue streams. It intends to expand beyond a remarkably competitive sector and leads to boom and bust with Bitcoin prices. However, only a small amount of information about the new crypto exchange is known. Ebang states that it will be a regulatory-compliant cryptocurrency exchange. Moreover, it would function outside China.
Comprehensive details about Ebang International Holdings
The move occurs after Ebang establishes subsidiaries in Australia. Hence, paving its way to venture into the digital asset trading business. To establish itself as a global digital asset platform, it expanded into Singapore for its planned offshore exchange for cryptocurrency. Ebang, which raised $100 million in June via a Nasdaq IPO, has been examining opportunities apart from the mining space to decrease its dependence on sales of bitcoin rigs. This is because sales of bitcoin rigs are vulnerable to cryptocurrency price fluctuations.
The Hangzhou-based Ebang also established another subsidiary in Canada in September. Moreover, it also acquired a licensed New Zealand broker and wealth management firm in October. Ebang International Holdings Inc. is a blockchain technology company with robust ASIC (application-specific integrated circuit) chip design ability. Additionally, it has years of industry experience and expertise in ASIC chip design. Moreover, it has grown into a preeminent bitcoin mining machine producer globally with secure access to wafer foundry capacity.
According to Ebang’s CFO Chen Lei, the company’s income could double to $200 million via the launch of its new crypto exchange. In 2019, the firm made $109 million in revenue, down from nearly $300 million in 2018. However, it reported losses in 2018 and 2019. It also incurred a $6.96 million operational loss in the first half of 2020. Nevertheless, the BTC price’s upside movement, which has generated over 300% year-to-date gain, will indicate great business for Ebang. Mining-equipment makers are making a massive profits confirming blocks.
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