Mining equipment manufacturer Ebang has announced its interest in acquiring a New Zealand financial company and setting up a digital asset financial services company. The Chinese company is following up with promises made in its IPO prospectus to become a complete digital currency financial service provider.
Ebang announced his latest move in a pers conference, disclosed that they have signed an Expression of Interest Tender Letter to “acquire 100% of the shares of a licensed financial company based in New Zealand that offers wholesale and general financial brokerage, and wealth management services to build a local digital asset financial services platform. “
Founded in 2014 by chairman and CEO Dong Hu, the company has grown to become one of the top 4 mining equipment manufacturers, along with market leaders Bitmain, Canaan and MicroBT. Ebang mining equipment first entered the market in 2016 and in the following two years, the company recorded massive growth. As a result, it filed for an IPO on the Hong Kong Stock Exchange, trying to raise as much as $ 1 billion. However, the IPO plan failed.
Refiled companies in the US and do an IPO at Nasdaq Global Markets in June 2020.
With the latest acquisition plans, Ebang keeps its promise to launch a comprehensive one blockchaina supportive financial business that seizes growth opportunities along the value chain, said CEO Hu.
He added, “Leveraging on our longstanding expertise in blockchain technology and our recent expansion to Singapore, Canada and New Zealand, we have taken a big step towards our goal of building a fully licensed Internet-based trading platform that provides professional, comfortable and serviceable. innovative trading. “
Ebang pointed out that the acquisition was not yet an agreement and was subject to negotiation between the related parties as well as approval from the relevant authorities.
With this expansion, Ebang will look for ways to diversify away from its core revenue stream which lies in the sale of mining equipment. As revealed in it IPO prospectus, his income has decreased over the past three years. In 2018, it recorded $ 319 million in revenue but in the following year, it saw a 65% drop to rake in $ 109 million in revenue. In Q1 this year, it recorded a loss of $ 2.5 million increased competition and decreasing digital currency prices.
See also: Jerry Chan’s presentation at CoinGeek Live 2020 on the Shift from a Bitcoin “Miner” to a “Transaction Processor”.
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