Amid the coronavirus pandemic, the revenue of the Chinese mining company Ebang in the first half of 2020 was halved compared to the same period last year.
According to the financial statements of Ebang, filed with the US Securities and Exchange Commission (SEC), the company’s net revenue in the first six months of this year decreased by $ 11 million (50.6%), while in the first half of 2019 it was $ 22.35 million.
Ebang Chairman and CEO Dong Hu explained that such a significant decline in revenue was due to the coronavirus pandemic. Chip suppliers were forced to reduce their manufacturing capacity, resulting in constant material shortages. This negatively affected the activities of the mining equipment manufacturer Ebang.
Ebang’s cumulative net loss in the first half of 2020 was $ 7.3 million, compared to $ 17.6 million in the same period in 2019, according to its unaudited financial report. Hu said that in the face of the pandemic, the company had to optimize its financial structure and look for new sources of income.
In August, Ebang announced plans to launch a cryptocurrency exchange in Singapore. The company believes the initiative will help double Ebang’s total revenue by 2022. Against the background of this news, the stock price of the mining company on the Nasdaq stock exchange rose by 2.5% to $ 9.85.
Recall that on June 26, 2020, Ebang entered the Nasdaq listing, hoping to raise from $ 106 million to $ 125 million. The company’s shares began selling at $ 5.23 per share, but the next day their value dropped to $ 4.12.
In August, Ebang announced its readiness to shift its focus to the production of chips for artificial intelligence (AI) due to declining profits from mining activities.
