Chinese crypto mining manufacturer Ebang has done an initial public offering (IPO) on the NASDAQ and is now a publicly traded stock under the ticker NASDAQ:EBON. However, the stock is already crashing, and in fact lost 25% of its value on day one.
Although Bitcoin (BTC) itself is not yet on the stock exchange, due to the Securities and Exchange Commission (SEC) having an anti-crypto stance, crypto companies can still be listed on the stock exchange if they can get through the regulatory process.
Up to now the only crypto related stocks that are publicly traded are mining manufacturers, and Ebang is just the latest.
Unfortunately for Ebang, they lost millions of dollars in Q1, and generally investors are wary of buying shares of a company that is losing money.
Also, the mining industry has been experiencing very turbulent times following the block halving, with numerous mining farms shutting down, and the demand for new mining rigs collapsing.
In other words, mining rig manufacturers are facing difficult and uncertain times due to the post-halving crash in the Bitcoin (BTC) hash rate, and this actually seems like the worst time for a mining rig manufacturer to do an IPO.
Ultimately, Ebang is following in the footsteps of Canaan, which was the first mining manufacturer to go public on a United States stock exchange and ended up falling 80% below its IPO price.
On a final note, Ebang had a goal of raising $100-$125 million, and it is unknown how much they ultimately raised in the IPO, but it seems unlikely they even got near the full amount due to the stock crashing so quickly during the IPO.