Chinese Bitcoin Mining Giant Ebang Is Launching an Offshore Exchange

Tuesday 30 June 2020, 1:08 AM AEST - 11 months ago

The worlds second-largest maker in bitcoin mining equipment hopes launching its own exchange could double total revenue by 2022.

In an interview with Bloomberg BNN, CFO Chen Lei confirmed the Hangzhou-based Ebang was planning to launch a regulatory-compliant crypto exchange that would strictly operate outside of China, where the government has cracked down hard on trading platforms.

Little else is known about the proposed exchange other than Ebang hopes to turn its fortunes around by tapping transaction fees as a consistent source of income.

Ebangs revenue stood at $109 million in 2019, which was roughly a third of what it made in 2018 – the tail end of the initial coin offering boom. Overall, the company has reported net losses in both 2018 and 2019.

The exchange will help diversify revenue so the company isnt as beholden to bitcoins wild volatility, Lei said.

This is the next in a series of branch-outs for Ebang, which has already set up an advisory service for clients, which Lei predicted could see the companys revenue grow 40% this year.

Ebangs share price had slid 4% to under $4 after its $100 million public offering on Nasdaq on June 26. The funding would go toward developing new mining equipment as well as help fund expansions overseas.


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