Bitcoin Mining Markets Heat Up: Ebang's $41M Deficit, Bitmain's Alleged 2020 Revenue

The Chinese ASIC mining rig manufacturer Bitmain reportedly pulled in $300 million in revenue during Q1 2020. Meanwhile, as Bitmain claims to be regaining market share, the firm Ebang recently applied with the U.S. Securities and Exchange Commission (SEC) for initial public offering (IPO) status. However, the prospectus sent to SEC shows that while Ebang made $109 million last year, the company also had a $41 million deficit in 2019.

Bitcoin mining is feverishly hot these days, especially just before the great Bitcoin reward halving that will take place on or around May 12, 2020. During the last six months, there’s only a handful of ASIC mining rig manufacturers and all of them stem from China. This includes companies like Bitmain, Ebang, Strongu, Innosilicon, Microbt, and Canaan. There are a few other manufacturers, but the firms are not nearly as sizable as these six businesses. Just recently, the company Ebang filed for a $100 million initial public offering (IPO) in the U.S. and the company will await a decision from the SEC. Although, the firm’s prospectus shows that Ebang suffered from some losses in 2019, and it may reflect the IPO’s initial raise.

Bitcoin Mining Markets Heat Up: Ebang's $41M Deficit, Bitmain's Alleged 2020 Revenue

Ebang’s prospectus shows the firm 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 ASIC manufacturing, as Ebang looks to launch a digital currency trading platform internationally as well. Last year, the ASIC manufacturer Canaan bid it’s IPO with SEC for $400 million on the Nasdaq Global Market. But when the Chinese mining rig manufacturer Canaan Inc. launched its initial public offering (IPO) sale on November 21, it only raised $90 million worth of shares. In March 2020 Canaan was sued and accused of misleading IPO investors in a class-action lawsuit. Ebang also has a number of lawsuits as well and was allegedly investigated by the Beijing Police Bureau in December 2019.

While Ebang filed for an IPO in the U.S., it was rumored last October that Bitmain filed confidentially for a U.S.-based IPO. At the end of February, Bitmain launched two next-generation bitcoin miners with max speeds up to 110TH/s Per unit. According to a regional report discovered by 8btc on April 29 via Wemedia, Bitmain allegedly made $300 million in revenue during the first quarter of 2020. The report also disclosed that Bitmain told it’s employees this information and the company has increased it’s hashpower a great deal as well. Financial columnist lylian Teng explained that it is uncertain whether or not Bitmain is still profiting after the market downturn in March.

“In Q1 of 2019, Bitmain’s total revenue reportedly stood at $1.082 billion but registered a $310 million loss,” Teng wrote.

Bitcoin Mining Markets Heat Up: Ebang's $41M Deficit, Bitmain's Alleged 2020 Revenue

While Ebang files for an IPO in the U.S. and Bitmain tries to obtain more market share, other firms are racing toward becoming ASIC manufacturing giants as well. Both Microbt and Innosilicon have ramped up sales quite a bit and have seen a lot more presence on secondary markets and ASIC mining rig review sites. Meanwhile, as the bitcoin mining competition grows extremely fierce, the Bitcoin Halving will take place in a little more than two days, which will chop every bitcoin miner’s revenue by 50%.

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

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