Chinese cryptocurrency mining hardware firm Ebang has said it is planning for upscaled production in 2019, after projecting growing demand for the firm’s Bitcoin mining machines, according to local news ports. The news comes despite dire market conditions for mining hardware manufacturers, with the third quarter of 2018 in particular reflecting heavy losses across the industry’s major players.
According to an 8BTC report, which quoted local news outlet Yuhang Morning Paper, Ebang claimed to be on track to produce 400,000 crypto mining units this year, up from the 309,000 mining units sold in the first six months of 2018. While figures for Q3 have yet to be released, the firm has already braced investors for “significant decreases” in profitability.
“We experienced significant decreases in revenue and gross profit for the three months ended September 30, 2018 compared to the preceding three months ended June 30, 2018,” Ebang noted in its prospectus.
Undeterred, the manufacturer said it was planning for an increase in production to 400,000 this year, thought to be slightly greater than the number of mining units sold for the full year 2018.
The collapse in Bitcoin Core (BTC) prices has cause a number of crypto mining companies to run into financial difficulties, with widespread layoffs and closures across the sector since 2017. Similar results have been reflected throughout the industry, with the biggest three companies—Bitmain, Canaan and Ebang—shedding significant value since the decline.
Ebang is thought to be attempting to capitalize on the significant financial difficulties of industry leader Bitmain, with the second largest manufacturer Canaan also reporting challenges. The three firms account for over an 85% share of the total market.
Whether Ebang can succeed where their larger rivals struggle remains to be seen, though it’s unlikely the sector will experience a significant uptick in demand any time soon.
No further comments have been made by Ebang, which is currently in the ‘quiet period’ ahead of its forthcoming listing on the Hong Kong Stock Exchange. The application originally files in June 2018 is pending approval, as the firm attempts to gain listing approval for the exchange. Bitmain’s IPO is similarly still pending, while Canaan elected to allow its application to lapse, in light of the difficult market conditions.
If approved, Ebang shares will be traded publicly on the Hong Kong Stock Exchange.
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