What has been updated in Yibang's prospectus: the amount of funds raised has increased, the underwriter has increased the valuation by about 600-900 million, and it will become the second stock of mining machinery

Ebang International, the second largest mining machine stock, updated its prospectus on June 17. What was updated?

The updated prospectus announced the revenue status for the first quarter of 2020 and increased the maximum fundraising amount from US$100 million to US$125 million. Previously, Canaan raised US$90 million when it went public. In addition, Prime Number Capital was added as an underwriter. The company's valuation is approximately between US$600 million and US$900 million.

The updated prospectus shows that Yibang International plans to issue 19,323,600 shares with an issue price range of US$4.5 to US$6.5, and raise funds of US$86.94 million to US$125 million. Yibang's increase in its fundraising amount seems to indicate that the roadshow situation exceeded expectations.

Previously, Wu Blockchain learned that although Canaan's stock price continued to fall, even falling below US$2 for the first time in history, Fidelity, one of the world's largest investment management companies, was increasing its holdings of Canaan Technology's stock.

As of March 31, Fidelity has increased its holdings of 2,338,558 shares of Canaan Technology, holding 1.49% of Canaan's shares, and it is likely to continue to increase its holdings. In addition, the Renaissance Foundation also purchased 17,400 shares of Canaan.

According to people familiar with the matter, many traditional institutions are looking for high-quality cryptocurrency targets, and Ebang may benefit from this, so the amount of funds raised has increased. On the other hand, if Bitmain, Shenma, and Xindong, which have a higher market share, go public, they may trigger greater pursuit from the capital market.

Yibang's prospectus stated that it has successfully designed 7nm and 8nm chips and is currently focusing on developing proprietary 5nm ASIC chips and mining machines for non-Bitcoin cryptocurrencies such as Litecoin and Monero.

In late April, Yibang submitted its prospectus, which stated that Yibang International's revenue in 2018 and 2019 was US$319 million and US$109.1 million, respectively. Its gross profit in 2018 was US$24.4 million, and its gross loss in 2019 was US$30.6 million. Its net losses in 2018 and 2019 were US$11.8 million and US$41.1 million, respectively.

In 2019, Ebang's purchases of ASIC chips from Samsung and others directly from Samsung were the largest, accounting for 43.8% of the total purchases of raw materials and subcontracting services for production purposes.

Not surprisingly, Ebang International will become the second listed mining machine company. The first listed mining machine company, Canaan, was listed in the United States in the fourth quarter of last year.