Corona causes gross sales of Bitcoin mining firms to break down by 50 p.c

by Patricia Lin
Corona causes sales of Bitcoin mining companies to collapse by 50 percent

The Covid-19 pandemic has left deep marks on Ebang International Holdings Inc.'s half-year outcomes. The chip designer and producer of Bitcoin mining {hardware} offered its business figures for the primary half of the yr on September 25th.

For the newcomer to the inventory alternate – the corporate has been listed on the Nasdaq know-how index for the reason that finish of June – H1 2020 was something however a hit story. The turnover of the Bitcoin mining firm has plummeted by over 50 p.c in comparison with the identical interval final yr.

In the semi-annual report that the Chinese firm submitted to the US Securities and Exchange Commission, the corona outbreak is cited as the primary cause for the decline in gross sales. The cause for the lack of gross sales was not a lot the interim stoop within the Bitcoin value, however quite supply bottlenecks for the chips that Ebang makes use of for its Bitcoin miners.

Our chip suppliers have lowered their manufacturing capability as a result of results of COVID-19, which resulted in our useful resource shortage within the first six months of 2020,

says Ebang CEO Dong Hu within the report quote. Hu continued to reply to the challenges of the Corona disaster in good time:

Given the turbulent social and industrial setting, we took well timed and proactive steps to make sure the resilience of our business operations and permit us to carry out properly after market circumstances return to regular.

Ebang desires to diversify with Bitcoin exchanges

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Apparently, this additionally contains Ebang placing out feelers for brand new sources of revenue, particularly within the route of blockchain-based monetary companies.

Given the turbulent social and industrial setting, we took well timed and proactive steps to make sure the resilience of our business operations and permit us to carry out properly after market circumstances return to regular.

Obviously, this additionally signifies that Ebang is placing out feelers for brand new sources of revenue, particularly within the route of blockchain-based monetary companies.

Against this background, our administration has actively optimized our earnings construction primarily based on the productiveness ratio and strategically examined the growth into blockchain-based monetary companies.

Ebang CFO had already leaked in June that the corporate wish to increase its actions past Bitcoin mining. There was speak of a deliberate “offshore” alternate; At the time, the CFO was nonetheless silent about the place this could come up. In August, Ebang shed some gentle: The institution of a subsidiary in Singapore is meant to pave the best way for a Bitcoin alternate within the nation. An analogous announcement not too long ago adopted for the North American area: On September 28, Ebang introduced a brand new subsidiary in Canada, which can be dedicated to constructing a Bitcoin alternate. The firm hopes that by increasing its business actions, it should develop into extra impartial of the Bitcoin charge.

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