Bitcoin mining machine Ebang IPO reportedly raises 7.8 billion

According to Hong Kong's Ta Kung Pao, in addition to Xiaomi, new economy concept stocks are coming one after another. Bitcoin mining hardware manufacturer Ebang International uploaded its prospectus to the Hong Kong Stock Exchange yesterday, applying for listing on the Hong Kong Main Board, with Haitong International as the exclusive sponsor. Ebang is one of the world's three largest BPU manufacturers for Bitcoin mining, and it is rumored that its fundraising amount has reached US$1 billion (approximately HK$7.8 billion).
In its listing documents, Ebang mentioned that it designs, produces and sells blockchain processors or "BPUs", which are a type of specialized computing hardware designed for cryptocurrency mining, generally referred to as "mining machines". According to iResearch's report, in 2017, the company's market share reached 11% in terms of sales revenue and 10.9% in terms of computing power sold, making it one of the world's top three BPU manufacturers dedicated to Bitcoin mining.
As of the end of 2017, Ebang's revenue increased 7 times year-on-year to RMB 978 million, and its net profit increased 29 times to RMB 378 million. In terms of gross profit margin, the company achieved a relatively high gross profit margin of 54.9%, 47.8% and 53.9% in the years ended December 31, 2015, 2016 and 2017, respectively.
The Group expects that the proceeds from the fundraising will be used for the following purposes, including developing and launching new BPU products capable of mining Bitcoin and other cryptocurrencies in the next four years; further developing and providing new telecommunications products, including those using 5G technology; building new production facilities in Hangzhou, Zhejiang and Wuhai, Inner Mongolia; increasing investment in corporate branding and marketing activities; expanding overseas business; establishing overseas assembly facilities in North America and opening sales and customer service centers and repair offices in North America and Europe; and general working capital in the next two years.
Foreign media reported earlier that the three major Bitcoin mining machine manufacturers are all interested in listing in Hong Kong. In addition to Canaan, which submitted its listing application in May this year, and Ebang, which submitted its application yesterday, Bitmain, which accounts for about 75% of the global mining machine market share, has not ruled out listing in Hong Kong. The three companies account for more than 90% of the global Bitcoin mining machine market.