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Ebang Communication, one of the largest bitcoin mining chip makers in China, is seeking to go public on the Hong Kong Stock Exchange (HKEX).
The application for an initial public offering with the HKEX is already filed. Nevertheless, there is no information on the valuation of the company and on the amount that it is going to raise.
In May, the company had some talk with advisors on this issue and at that time Ebang Communication intended to raise $1 billion, which sounded like the largest IPO in the crypto industry.
The filing also comes just a month after Ebang’s rival bitcoin miner maker Canaan Creative submitted an IPO application to the HKEX, which was also reportedly aiming to raise $1 billion.
In addition, Ebang’s filing today offered fine details on the firm’s business operations.
Based on a financial statement included as part of the IPO filing, Ebang raised 925 million yuan ($141 million) in revenue in 2017 alone, marking a 17x year-on-year growth compared with 2016.
Similarly, the firm said in the document it recorded 380 million yuan (or $60 million) in net profit in 2017, which is 34 times more than that in the year before.
Founded in 2010, Ebang Communication started by manufacturing hardware products for the telecommunication industry. The firm later moved into the cryptocurrency mining business by launching its own Ebit miners in 2016 to compete with Chinese bitcoin mining giant Bitmain and Cannan Creative.
Notably, the financial document shows that in 2017, 94.6 percent of Ebang’s revenue was generated from the sale of bitcoin miners. That number has also grown significantly from just 31 and 42 percent in 2015 and 2016, respectively.
Nevertheless, the issues related to the electricity consumed by miners all over the world still remain rather pressing. A number of countries today are seeking to ban mining or at least to impose some limits for each miner.
For example, Quebec’s public power utility has proposed plans to create a new framework through which the local authorities should work with cryptocurrency miners.
Earlier this year, Hydro-Quebec informed that it would not be able to support all the demand for mining that is observed nowadays. If the proposed plan is approved, Hydro-Quebec will parcel out 500 megawatts worth of power to crypto miners.
According to the document, Ebang is also in the process of making its own 7nm bitcoin miners. Japan’s IT giant GMO Internet has already launched the world’s first bitcoin miner equipped with a 7nm chip.
Meanwhile, in China, the local authorities arrested a man who is accused of having stolen a significant amount of power in order to perform a clandestine cryptocurrency mining activity.
Let us also mention that at the current moment Bitcoin is experiencing not the best period in its history. On Sunday, we could observe the lowest mark of Bitcoin price in 2018. Bitcoin was traded at $5826,41. At press time, according to CoinMarketCap, it is traded at $6,173.60, having gained 4.73% over the recent 24 hours,