Chinese mining equipment manufacturer Ebang has submitted financial statements to the U.S. Securities and Exchange Commission (SEC) for the first half of 2020. It shows that revenues of the Nasdaq-listed company in this segment decreased by $11 million or 50.6% compared to the same period last year. For the first half of 2019, the value was $22.35 million.
Ebang Chairman and CEO Dong-Hu linked the decline in revenue to the Coronavirus pandemic. It forced chip suppliers to reduce production capacity and caused a constant shortage of materials. All this was directly reflected in Ebang's business.
According to the financial statements before the audit, Ebang's total net loss in the first half of 2020 was $7.3 million compared to $17.6 million for the same period last year. According to Hu, under the circumstances, the company was forced to optimize its financial planning and look for new sources of income.
Earlier it became known that Ebang intended to open its own crypt exchange abroad. According to her expectations, this step will help double the revenue by 2022. For 2018, its revenue was $300 million.
The market has responded positively to the news of reduced losses Ebang and its desire to diversify sources of income. Against this background, their rate rose by 2.5% to $9.85. Trading of Ebang securities on Nasdaq started in June at a price of about $5.