Ebang explains 50% drop in revenue amid the pandemic

The Chinese mining equipment manufacturer Ebang International Holdings reported that revenue for the first half of the year was $11.04 million, compared with $22.35 million for the same period in 2019. The 50.6% drop was attributed to the impact of COVID-19.

«Our chip suppliers have reduced their manufacturing capacity due to the impact of COVID-19, which led to shortages of components during the first six months of 2020», — said Ebang CEO Dong Hu.

For the first half of the year, the company posted a net loss of $6.96 million, compared with $19.07 million a year earlier.

Hashrate sales plummeted in the first six months of the year by 86.02% year-on-year to 0.25 EH/s from 1.82 EH/s.

Ebang also announced the establishment of a subsidiary in Canada as part of its plan to launch a cryptocurrency exchange. Earlier, the company for this purpose registered a ‘daughter’ in Singapore.

A well-known industry critic under the pseudonym BTCKING555 called the report about the Canadian firm an attempt by Ebang’s management to deflect attention from the shrinking market share.

Nice Try $EBON Chairman Dong. To divert attention from collapsing market share and sales @Ebang_Co Dong makes an irrelevant / no revenue impact announcement on opening subsidiary in Canada. Part of his grand plan to take on @binance @huobi and @okEx 😭😭😭 https://t.co/zschzhLt5w

— BTCKING555 (@btcking555) September 28, 2020

In June, Ebang raised $101 million in its Nasdaq IPO. The company placed 19.3 million shares at a price of $5.23. By September 17, the stock had more than doubled to $10.59. At the time of writing, the shares were trading around $9.8.

As a reminder, shares of another Chinese mining equipment maker Canaan after its IPO in November 2019 collapsed from a high of $8.90 to trading below $2 in June this year.

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