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Ebang will venture into Bitcoin mining and rent the hash rate of other farms

Ebang International, one of the leading manufacturers of Bitcoin (BTC) mining equipment, plans to operate directly in this business through the rental of hash rates from other mining farms. Not without offering more details on this subject.

The information was published in a brief statement posted on its website, through which it announced that it also plans to use self-manufactured mining equipment, in combination with the purchase of mining machines created by other firms.

In the document, dated February 17, 2021, in Hangzou province, China, the company commented that this decision was made in the framework of a meeting of the board of directors, where the resolution to enter the mining business was approved. of Bitcoin. The company also plans to invest in the construction of data centers to provide support for these activities.

In this regard, Dong Hu, president and CEO of Ebang, commented that, by getting involved in the bitcoin mining business, the company not only hopes to position itself as a producer of bitcoin mining machines:

This move will increase our revenue in the cryptocurrency business and optimize our product offering structure. We believe it will help the transformation of the company from a hardware manufacturer to a blockchain company with comprehensive implications in its industry chain.

Dong Hu, CEO of Ebang.

However, the statement ends by notifying shareholders that there is no guarantee that the company’s Bitcoin mining business will start as planned, or that such business operation will improve its financial performance.

Ebang to launch cryptocurrency exchange

On December 31, 2020, the company, considered one of the most recognized players in the development and commercialization of specialized ASIC equipment for cryptocurrency mining, announced in a press release that it also plans to officially launch its exchange in this first quarter of 2021.

Clarifies the company that has completed internal testing of the exchange of cryptocurrencies, at the same time that the public study began.

On that occasion, Dong Hu commented that the completion of the internal testing of the cryptocurrency exchange is one more step in the expansion of the “blockchain financial services” business.

“In the meantime, we will also explore other business opportunities in the blockchain and cryptocurrency industry, such as the establishment of mining farms and cryptocurrency mining to optimize the structure of our offerings in the value chain of the blockchain industry,” he added.

Ebang seeks to move from being just a hardware manufacturer to becoming a “blockchain company.” Source: Doughnutew / pxhere.com

To launch this cryptocurrency exchange, Ebang established a subsidiary in Singapore, which is why it awaited the approval of the regulatory authorities of that nation.

“As our next step, we plan to seek the relevant government approval and license to operate the cryptocurrency exchange and related businesses,” the company said on August 14, 2020.

Ebang on the Nasdaq market

After it was known that Ebang would activate its own cryptocurrency exchange, the price of its shares rose by 23% on the Nasdaq market in New York, according to CriptoNoticias on January 3, 2021.

The company also expressed its intention to venture into other business models within the bitcoiner ecosystem and announced that this was well received by investors. The company’s shares on the Nasdaq market went from a price of less than $ 5 per unit to above $ 6 in a single day.

In a statement published on February 17, 2021, the financial group Univest Securities announced that its client, Ebang, managed to sell, as proposed, a group of 16 million Class A shares for a total amount of USD 70 million through of a Follow-up Public Offering (FPO)

It should be remembered that Ebang received the intention to list on the Nasdaq global market with the EBON token, since June 26, 2020. It thus became the second crypto mining company to be listed on a United States stock exchange, as reported Chinese news channel Blockbeats.

At the time of writing, the EBON price is USD 12.59, which represents an increase of USD 2.11 in the last 24 hours.