Chinese Bitcoin mining hardware manufacturer to launch an offshore exchange

Tuesday 30 June 2020, 2:52 AM AEST - 5 months ago

Bitcoin miningChinese Bitcoin mining hardware manufacturer to launch an offshore exchange 19

China-based Bitcoin mining hardware manufacturer Ebang hopes to launch its own cryptocurrency exchange.

Speaking to Bloomberg BNN, the companys CFO Chen Lei revealed that the company is planning to launch a regulated crypto exchange that would operate outside of China. The Hangzhou-based company has recently gone public with an initial public offering on Nasdaq.

Ebang to launch an exchange

According to the firms filings with the US Securities and Exchange Commission (SEC), the firm aims to expand its operations. The firm aims to expand its business into new sectors of industry such as crypto trading to cater to the need of its overseas customer base.

The firm plans on establishing its own mining farms and pools to earn revenue. The mining giant will also set up a crypto trading exchange as a part of its expansion strategies.

The bitcoin mining giant plans to launch an exchange in overseas jurisdiction as China does not permit cryptocurrency trading. While the company is based in China, the holding firm is located in the Cayman Islands.

The company recently set up an advisory service for clients which could raise the firms revenue by 40 percent according to Chen Lei. The overseas exchange can potentially double the companys revenue by 2022.

Bitcoin mining giant goes public on Nasdaq

Ebang recently conducted an initial public offering (IPO) on Nasdaq raising $100 million. The funds will be utilized in the development of new mining equipment as well as the companys expansions overseas.

The company was to issue 19.3 million class A ordinary shares that would be traded for $5.00 each. The share price declined by around 14 percent to $4.31.

You can read more about the IPO here.

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