Lei Jianping reported on June 27
Bitcoin mining company Ebang International was listed on the NASDAQ in the United States last night, raising more than $100 million, and Ebang International closed at $5, and at the closing price, Ebang International had a market value of $655 million.
Hu Dong, CEO of Ebang International, said in his listing speech that the listing on nasdaq's global select market marks that the company's development has entered a new stage, and Ebang International will continue to work hard and continue to climb new heights.
From university teachers to joining the ranks of Bitcoin giants
Ebang International is also another overseas listed bitcoin mining enterprise after Canaan Technology. However, as the three major bitcoin mining giants juxtaposed with Bitmain and Canaan Technology, Ebang International is low-key, and the outside world does not know more about Ebang International than the first two.
Hu Dong, the founder of Ebang International, graduated from Zhejiang University of Technology with a bachelor's degree in industrial automation in 1998 and obtained a master's degree in business administration from Zhejiang University in 2008. Hu Dong was a teacher at Zhejiang University of Technology.
Hu Dong from a university teacher to one of the bitcoin mining giants, there are also coincidences.
Hu Dong said in an exclusive interview with Lei Di Network yesterday that Ebang International was founded in 2010, and it is a teacher at Zhejiang University of Technology, and only resigned in 2017.
Hu Dong was in charge of network management in the school and served as the deputy director of the network center of Zhejiang University of Technology. Exactly in 2010, Zhejiang encouraged teachers to start a business, as long as they did their own work well, which gave Hu Dong a lot of space.
Hu Dong deals with the communication industry every day, Ebang International was established at the beginning of the establishment of the communication equipment-based business, and the communication industry has a cyclicality, and Hu Dong in 2011 was very concerned about Bitcoin, came up with the idea of doing mining machines, encountered the trough of the communications industry, Ebang International considered whether to do research and development in the field of blockchain.
Ebang International began in 2014, invested a lot of energy to do Bitcoin mining machine, until 2016 mining machine was launched, before and after 9 versions. It can be understood that the cyclical nature of the communication industry forced Hu Dong to embark on the road of bitcoin mining machine entrepreneurship, and he did not expect to become a listed company.
The listing has been full of twists and turns
Since its establishment in 2010, Ebang has more than ten years of professional knowledge and production experience in the integrated circuit industry, has strong ASIC chip design capabilities, and is one of the earliest mining machine manufacturers in the industry to use 10nm ASIC chips for commercial use.
Of course, it is not easy to really go to the point of listing on the NASDAQ in the United States. Ebang International once listed on the New Third Board and did two rounds of fundraising, and began to consider listing in Hong Kong in the second half of 2017.
This time Ebang International to the U.S. stock market to a certain extent is a helpless move, before the two times to sprint to the Hong Kong Stock Exchange failed, this is not to blame Ebang International, before Bitmain, Canaan Technology have impacted the Hong Kong Stock Exchange failed. The reason is that the Hong Kong Stock Exchange is keen on biomedical companies and Meituan, Xiaomi and Ali, but it is very cold to mining machinery companies.
Hu Dong said that the whole listing process is very bitter, step by step to today is not easy, for example, when preparing for the Hong Kong listing, the prospectus was submitted, but suddenly learned that it is difficult to be approved to be listed in Hong Kong, which is equivalent to being hit in the head. When the road is not working, it is necessary to have tenacity and strong ability to resist pressure.
"On June 20, 2019, the prospectus submitted in Hong Kong failed, which was not only a pressure on the founders, but also on the entire team, and at that time, he was hesitant to go public in the United States."
The US capital market is more recognized by bitcoin mining machine enterprises, and the team of Ebang International has gone through ten years from its inception to the present, and it is not easy. Hu Dong said that listing on the NASDAQ global select market in the United States is also the recognition and encouragement of the capital market to Ebang International.
In Hu Dong's view, the positioning of Ebang International is not a pure concept of Bitcoin mining machine, but from upstream to downstream, it is an ecological concept, there will be exchanges, ores, mining machines, mines, listing itself to enhance the company's brand and recruit better talents are of great help.
The price of Bitcoin experienced a lot of fluctuations from 2017 to 2019, which had a great impact on Ebang International, Bitmain, and Canaan Technology. Especially in 2018, the price of bitcoin soared, who has mines who make a fortune, but some companies have not handled the inventory well, resulting in a large number of chips in their hands.
According to the prospectus, Ebang International's revenue in 2019 was US$109 million, compared with US$319 million in the same period of 2018; Ebang International lost US$41.07 million in 2019 and a net loss of US$11.81 million in the same period last year. Ebang International's revenue for the first quarter of 2020 was $6.4 million, up 6.1% from $6 million in the year-ago quarter.
Ebang International's net loss for the first quarter of 2020 was US$2.5 million, compared to a net loss of US$600,000 in the same period last year, and the loss widened due to a significant reduction in local non-recurring tax returns.
Hu Dong said that the industry went crazy in 2017 and 2018, went crazy in the second half of 2018, and began to rise in the second half of 2019. From the perspective of Ebang International, 2020 will certainly be better than 2019.
"From the perspective of development, if mining machine manufacturers only stare at the mining machine competitors or not, purely stare at the price of bitcoin, and watch the sky eat, such a company is more difficult to do." Ebang International mainly considers the company's long-term and stable growth ideas. ”
Hu Dong pointed out that the exchange of Ebang International will go online and get a legal license, and the income of this piece should soon be reflected. Ebang International also has a communication business, especially after the construction of 5G, it will also bring great benefits to the company.
"The income of the four major sectors supports the stable development of Ebang, not the pure impact of coin price changes." Ebang International loss is very important reason for inventory, not in the full sense of the sense of loss, we hope for stable development, will not go to the whole venture. ”
At present, Ebang International has completed the design of 8nm and 7nm ASIC chips and began to focus on the development of 5nm ASIC chips and other non-Bitcoin cryptocurrency mining machines.
Hu Dong said that the mining machine industry also has a threshold, not to come in if you want to come in, to go out when you want to go out, nor to throw money to solve, but to iterate and recognize the problem. From the perspective of Ebang International itself, mining machinery is the main business, and it will certainly not give up, and it can also be developed in cooperation with partners to do a good job in the industry.
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