Bitcoin Mining Markets Overheating: Ebang’s $ 41 Million Deficit, Bitmain’s Alleged 2020 Revenue

Chinese mining platform manufacturer ASIC Bitmain reportedly grossed $ 300 million in revenue during the first quarter of 2020. Meanwhile, as Bitmain claims to regain market share, the Ebang company recently filed an application with Securities and Exchange. United States Commission (SEC) for Initial Public Offering (IPO) state. However, the prospectus sent to the SEC shows that while Ebang made $ 109 million last year, the company also had a $ 41 million deficit in 2019.

Ebang’s IPO prospectus shows a $ 41 million deficit and plans for an exchange

Bitcoin mining is feverishly hot these days, especially just before the big Bitcoin reward halving that will take place around May 12, 2020. Over the past six months, there is only a handful of ASIC mining rig manufacturers and they all come from from China . This includes companies like Bitmain, Ebang, Strongu, Innosilicon, Microbt, and Canaan. There are a few other manufacturers, but the companies aren’t as big as these six businesses. Just recently, the Ebang company filed a $ 100 million initial public offering (IPO) in the United States and the company will await a decision from the SEC. However, the company’s prospectus shows Ebang suffered some losses in 2019 and could reflect the initial IPO hike.

Ebang’s prospectus shows that the company made over $ 109 million in 2019, but it also had a deficit of around $ 41 million. The prospectus shows that the company’s roadmap also includes more than just manufacturing ASICs, as Ebang seeks to launch a digital currency exchange platform internationally as well. Last year, ASIC maker Canaan offered its IPO with SEC for $ 400 million on the global Nasdaq market. But when Chinese mining rig manufacturer Canaan Inc. launched its initial public offering (IPO) sale on November 21, it raised just $ 90 million worth of shares. In March 2020 Canaan was sued and charged with misleading IPO investors in a class action lawsuit. Ebang also has a number of lawsuits and was allegedly investigated by the Beijing Police Bureau in December 2019.

Bitmain allegedly brings in $ 300 million in the first quarter of 2020

While Ebang filed for an IPO in the United States, last October there were rumors that Bitmain had confidentially filed for a U.S.-based IPO. At the end of February, Bitmain launched two next-generation bitcoin miners with top speeds of up to 110TH / s per unit. According to a regional report uncovered by 8btc on April 29 via Wemedia, Bitmain reportedly earned $ 300 million in revenue during the first quarter of 2020. The report also revealed that Bitmain told its employees this information and the company has significantly increased its hash power as well. Financial columnist lylian Teng explained that he is not sure if Bitmain is still profiting after the market slump in March.

“In the first quarter of 2019, Bitmain’s total revenue would have been $ 1.082 billion, but they posted a loss of $ 310 million,” Teng wrote.

While Ebang applies for an IPO in the US and Bitmain seeks to gain more market share, other companies are racing to become ASIC manufacturing giants. Both Microbt and Innosilicon have increased their sales somewhat and have seen much more presence on secondary markets and ASIC mining rig review sites. Meanwhile, as competition for bitcoin mining grows extremely fierce, Bitcoin Halving will take place in just over two days, which will cut every bitcoin miner’s revenue by 50%.

What do you think of the Ebang prospectus and the alleged $ 300 million worth of Bitmain made in 2020? Let us know in the comments below.

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