Hangzhou-based crypto mining company Ebang International Holdings Inc. is all set to launch its crypto exchange platform. The mining giant has decided to expand its business into the digital asset exchange because of the consistent loss in their business.
A regular drop in the bitcoin prices becomes a headache for crypto mining companies like Ebang. According to the resources, the China-based mining company generated a revenue of $109 million. That was a clear loss for the company.
Reports even mentioned that it has been the least number of sales since the year 2018. The sales kept decreasing after the year 2018. Ebang has provided data of its net losses during the year 2018-2019.
Ebang is about to increase its revenue up to 40% in the year 2020 with a cryptocurrency exchange that works overseas. Ebang is a china-based company where cryptocurrency trading is outlawed. The company is incorporated in the Cayman Islands.
China-based mining expert has seen a constant growth in the cryptocurrency exchanges. The CFO of the company, Chen Lei admitted the revenue can be increased to $200 million in the present year.
This new launch of the crypto exchange has doubled up the revenue remark of Ebang in just a few months after the launch. According to the CFO, it would have been impossible to achieve the target until 2022 without the newly launched crypto exchange.
The company was able to expand its business because of the IPO raise of $100 million. However, the goal of the China-based crypto mining firm was to raise $125 million. If it happens the market value of the firm will become $800
It gave new hope to the crypto giant to take the business to new heights. Ebang is also willing to expand its exchange platform overseas and also investing in new machines and technologies.
One of the parts of the plan is to set up a crypto exchange outside of the country, Chen said. Whenever the new exchange tends to work without a flaw, it will help to combat the volatility in the market. World’s largest cryptocurrency is being traded in the range between $5000 and $10,000.
Once a new platform will be available to the traders, it will be easier for them to trade at other amounts as well. This new regulatory-compliant crypto exchange will be available to everyone. The company has also decided to imply a transaction fee to earn its income from the platform.
Its rivals, on the other hand, are constantly involved in creating coins for the digital currency irrespective of the fluctuating prices of Bitcoin. Ebang is also setting out to branch its services in the advisory section. The share price of the company has also increased up to 4%.
Despite being the first mining company to go public in the USA, Canaan’s market price of a share is $2. Ebang, on the other hand, has been able to put itself at a better place with per share trade at $4.
Ebang is also willing to explore the blockchain services in other sectors such as healthcare, education, and financial services. In short, the goal of the company is to become a complete blockchain solution provider.
The company has also made it to the Nasdaq Global Market under the ticker EBON. Ebang will be the second crypto mining company to launch its crypto exchange in the United States. The first mining company called Canaan is also based in China.
It has become one of the crucial steps to help reach Ebang to its financial goal. The Nasdaq listing will not only increase its profits but also give the brand recognition in the field. It has also increased the share price of the company.
Nasdaq also offers regulatory compliance to companies that are listed under it. This credit will take Ebang a long way to operate as a cryptocurrency trading platform. Every transaction will be secure and compliant to the US Securities and Exchange Commission.