Mining company Ebang expects US$70 million in net proceeds
The mining company Ebang recently announced that it will start mining Bitcoin with its own machines. With the hoped-for increase in revenue, the company wants to invest in research projects, among other things, in the future.
The main focus of Ebang’s Bitcoin mining is to increase turnover. This emerges from a press release published on 17 February 2021. According to this, institutional investors have Crypto Bull already agreed to purchase a total of 14 million units of the share. The price of such a share is 5 US dollars. The company would thus generate total gross proceeds of 70 million US dollars to support the expansion of its own machines. Dong Hu, CEO of the Nasdaq-listed company, commented on other areas of application where the proceeds would go.
Cryptocurrency mining business and the establishment
The company intends to use the net proceeds from the offering primarily for the research, development, production and sale of cryptocurrency-related ASICs and devices, the expansion of its cryptocurrency mining business and the establishment and operation of cryptocurrency mining farms, and general corporate purposes, which may include working capital needs and other corporate purposes.
In December last year, the Chinese company announced that it planned to launch its own crypto wallet this quarter. The official launch of the wallet is planned as early as April this year. Currently, Ebang’s shares are trading at a price of 10.34 US dollars. The company has seen its price rise by over 44 per cent this year. Just one day after the press release was published last Wednesday, the company’s share value rose to 11.29 US dollars, which corresponds to a daily increase of over seven percent.