Ebang dives into block reward mining business

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Nasdaq-listed blockchain equipment manufacturer Ebang International Holdings Inc. (NASDAQ: EBON) has announced plans to use its own machine to mine digital currencies.

Per multiple press releases, the company’s board of directors passed resolutions approving its foray into BTC, Dogecoin, and Litecoin block reward mining business. 

Besides using its own mining machines, Ebang plans to use mining machines purchased from other manufacturers and leasing computing powers from other mining farms. The company announced it would invest in building its own data center to support block reward mining activities.

In a statement, Ebang Chairman and CEO Dong Hu said he expects mining will “increase our revenue in the cryptocurrency business and optimize our product offering structure.” 

Hu wants to transform Ebang into a blockchain company with a diversified and vertically integrated offering with “comprehensive involvements in the blockchain industry value chain” beyond solely hardware manufacturing. 

Ebang will build its LTC and DOGE mining business on top of its BTC mining business. The company has announced no timeline or fixed schedule. They caution shareholders not to place undue reliance on the press announcements. There is no guarantee that the block reward mining business will launch as proposed or at all.

The announcements came a few weeks after Ebang successfully designed a microchip for simultaneous Litecoin and Dogecoin mining. They intend this new design to allow an upgrade to the digital currency machines currently in the market. 

Ebang also plans to focus on developing more mainstream blockchain mining machines compatible with multiple digital currencies, with the goal being to optimize its product offering structure along the blockchain industry value chain.

“The completion of the designing is a credit to our increased investment in R&D in recent years. We have made tremendous efforts to build up our R&D team and accelerate product iteration and innovation,” Hu said.

See also: TAAL’s Jerry Chan presentation at CoinGeek Live, The Shift from Bitcoin “Miners” to “Transaction Processors”