Ebang International Holdings Inc. announced on August 14, the establishment of a Singapore-based subsidiary wholly owned by the company. The move comes in preparation for the introduction of its crypto exchange. Ebang produces bitcoin mining equipment and is a leading manufacturer of application-specific integrated circuit chip (ASIC).
From Bitcoin Mining to Crypto Exchange
As per the statement of Mr. Dong Hu, the CEO and Chairman of Ebang International, the Singapore subsidiary will open doors for the company to diversify its services, Now, they expect not only to provide mining equipment but also to offer customers with a trading platform.
He further stated that Ebang is to construct the ideal risk control system and an efficient transactional system to support its new services. It expects to get support from its development team and other necessary experts to leverage blockchain technology and offer all investors a secure, speedy, and reliable transactional system for digital assets exchange. He also expressed the company’s wish to avail maximum profits for traders while exploring more blockchain development options.
Ebang’s Recent Engagements
In June, Ebang conducted an Initial Public Offering and listed its Class A ordinary shares on NASDAQ as its select exchange. It is the second Chinese company to launch an IPO successfully on a U.S.-based exchange. The company raised over 100 million USD through the sale of 19,264,377 at an initial price of 5.23 USD. The shares offered on the IPO were less than what is quoted in an SEC filing before the IPO.
The company had attempted previously to get listings on the Hong Kong Stock Market in 2018, but the project was a failure. The IPO being fruitful gives Ebang the chance to work on other operations besides mining equipment into more geographical regions and business areas. Furthermore, the proceeding as per the June 17 filing will “pour into development of new mining equipment, corporate branding, and marketing endeavors, and general corporate purposes.” Ideally, these funds could also go into the new exchange proposal.
Future Hopes for the Company’s Crypto Exchange
According to Mr. Dong, the next step concerning the exchange platform is to acquire necessary governmental approvals and licenses related to crypto exchanges and similar ventures. However, he warns Ebang’s customers not to put their hopes high relating to these plans. He hoped all would go well, but noted that there was no guarantee of certain approval and licensing or the beginning of the project thereof.
