Paddy Baker
Chinese Bitcoin Miner Producer Ebang Is Launching an Offshore Exchange
One of the major manufacturers bitcoin mining equipment hopes launching its own exchange could double total revenue by 2022.
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In an interview with Bloomberg BNN, CFO Chen Lei confirmed the Hangzhou-based Ebang was planning to launch a regulatory-compliant crypto exchange that would strictly operate outside of China, where the government has cracked down hard on trading platforms.
Little else is known about the proposed exchange other than Ebang hopes to turn its fortunes around by tapping transaction fees as a consistent source of income.
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Ebang’s revenue stood at $109 million in 2019, which was roughly a third of what it made in 2018 – the tail end of the initial coin offering boom. Overall, the company has reported net losses in both 2018 and 2019.
The exchange will help diversify revenue so the company isn’t as beholden to bitcoin’s wild volatility, Lei said.
This is the next in a series of branch-outs for Ebang, which has already set up an advisory service for clients, which Lei predicted could see the company’s revenue grow 40% this year.
Ebang’s share price had slid 4% to under $4 after its $100 million public offering on Nasdaq on June 26. The funding would go toward developing new mining equipment as well as help fund expansions overseas.
At press time, Ebang was trading at $4.28.
UPDATE (June 29, 2020, 14:58 UTC): This article has been updated to clarify Ebang is not the second-largest producer of bitcoin miners.
Thursday, 14 January 2021