{"id":40381,"date":"2021-04-08T10:23:35","date_gmt":"2021-04-08T07:23:35","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=40381"},"modified":"2025-08-30T13:53:26","modified_gmt":"2025-08-30T10:53:26","slug":"ebang-shares-slide-14-8-after-short-sell-call","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/ebang-shares-slide-14-8-after-short-sell-call\/","title":{"rendered":"Ebang shares slide 14.8% after short-sell call"},"content":{"rendered":"<p>Shares of the mining company Ebang fell 14.8% in trading on 6-7 April. The market reacted to a report by Hindenburg Research recommending investors to short the stock.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">NEW FROM US\u2013 Ebang: Yet Another Crypto \u201cChina Hustle\u201d Absconding With U.S. Investor Cash<\/p>\n<p>(1\/x)<a href=\"https:\/\/t.co\/mxSmlvKii3\">https:\/\/t.co\/mxSmlvKii3<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24EBON&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$EBON<\/a><\/p>\n<p>\u2014 Hindenburg Research (@HindenburgRes) <a href=\"https:\/\/twitter.com\/HindenburgRes\/status\/1379414691055865856?ref_src=twsrc%5Etfw\">April 6, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Experts warned that the China-based firm misled investors about how its investments were allocated.<\/p>\n<p>The report claims that of the $374 million raised across four rounds after the IPO, Ebang allocated $103 million to buy shares of underwriter AMTD Group with a dubious reputation. $21 million of these funds went to repay loans taken out by a relative of founder Dong Hu.<\/p>\n<p>The authors noted that the manufacturer&#8217;s sales had fallen to a trough and its product line was dated. In the first half of 2020, Ebang shipped 6,000 mining devices.<\/p>\n<p>Hindenburg Research also pointed to the recently launched <a href=\"https:\/\/forklog.com\/en\/news\/chinese-mining-giant-ebang-launches-cryptocurrency-exchange\">Ebonex<\/a> platform. The analysts&#8217; view is that it appeared to be a &#8216;diversion&#8217;.<\/p>\n<p>Analysts said Ebang serves as a reminder of the need to follow the caveat emptor principle [<a href=\"https:\/\/www.investopedia.com\/terms\/c\/caveatemptor.asp\" target=\"_blank\" rel=\"noreferrer noopener\">caveat emptor<\/a>]. It obliges investors to conduct due diligence before buying shares.<\/p>\n<p>The company <a href=\"https:\/\/ir.ebang.com.cn\/news-releases\/news-release-details\/ebang-international-responds-short-seller-report\" target=\"_blank\" rel=\"noreferrer noopener\">said<\/a> that Hindenburg Research&#8217;s conclusions were unfounded.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>The report contains many errors, unsubstantiated speculation, and inaccurate interpretations of events. The company will take all necessary and appropriate measures to protect shareholders&#8217; interests<\/em>, the press release said.<\/p>\n<\/blockquote>\n<p>In June 2020, Ebang outlined plans to expand its business by creating an exchange after the Nasdaq IPO.<\/p>\n<p>In February 2021, ForkLog reported that Ebang shares had not reached new highs, unlike rivals. Among the reasons cited were <a href=\"https:\/\/forklog.com\/en\/news\/ebang-explains-50-drop-in-revenue-amid-the-pandemic\">unsatisfactory financial results<\/a><a href=\"https:\/\/forklog.com\/en\/news\/ebang-explains-50-drop-in-revenue-amid-the-pandemic\">for the first half of the year<\/a>.<\/p>\n<p>Follow ForkLog news on <a href=\"https:\/\/www.facebook.com\/forklog\" target=\"_blank\" rel=\"nofollow noopener\">Facebook<\/a>!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shares of the mining company Ebang fell 14.8% in trading on 6-7 April. The market reacted to Hindenburg Research&#8217;s report recommending investors to short the stock.<\/p>\n","protected":false},"author":1,"featured_media":40382,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[844,1211],"class_list":["post-40381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ebang","tag-stock-market"],"aioseo_notices":[],"amp_enabled":true,"views":"20","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/40381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=40381"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/40381\/revisions"}],"predecessor-version":[{"id":40383,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/40381\/revisions\/40383"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/40382"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=40381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=40381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=40381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}