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On the evening of June 26, Ebang International (ebang) "belled the bell" in Hangzhou and officially landed on the US stock Nasdaq, becoming the "second mining machine stock" after Canaan Zhizhi.
Summary
Summary
Topic: Yibang IPO, the "bell ringing dream" of miners. After the BTC block reward was halved for the third time, the BTC price did not rise significantly, but began to fluctuate downward. Affected by this, the mining machine market is sluggish, and mining machine manufacturers are in trouble. Ebang International is eager to go public for financing, which may be related to the financial difficulties it faces; since Canaan Zhizhi landed on NASDAQ, its stock price has fallen by nearly 90% from the highest point; Bitmain, the leader in mining machine market share, is due to "Gongdou" Waiting for negative news, it has not been listed for a long time.
Quotes: The market shrinks and goes down. The total market value of digital tokens this week was US$267.38 billion, a decrease of US$1.51 billion or about 0.6% compared to last week; the average daily turnover rate was 22.6%, a decrease of 2.3% from last week. The current price of BTC is 9162.9 US dollars, with a weekly decline of 1.3%, and the average daily trading volume is 18.1 billion US dollars. The current price of ETH is 229.67 US dollars, with a weekly increase of 1.1%, and the average daily trading volume is 7.22 billion US dollars. This week, the BTC balance on the exchange was 2.371 million, an increase of 74,397 from last week. The balance of ETH on the exchange was 13.317 million, a decrease of 323,917 from last week. Among the BICS secondary industries, the proportion of the media content industry has increased significantly.
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Risk warning: regulatory policy risk, market trend risk
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1. Yibang IPO, the "bell ringing dream" of miners
On the evening of June 26, Ebang International (ebang) "belled the bell" in Hangzhou and officially landed on the US stock Nasdaq, becoming the "second mining machine stock" after Canaan Zhizhi.
After the BTC block reward was halved for the third time, the BTC price did not rise significantly, but began to fluctuate downward. Affected by this, the mining machine market is sluggish, and mining machine manufacturers are in trouble.
1.1 Yibang International: Opening break
Ebang International was established in 2010, mainly engaged in the development and sales of communication network access equipment. With the rise of the blockchain in 2014, Ebang International chose to transform and began to develop, produce and sell mining machines, developing rapidly. In 2015, Yibang International's revenue was 92.14 million yuan, with a net profit of 24.236 million; in 2016, the revenue was 120 million yuan, and the net profit was 124 million yuan; in 2017, the revenue was 978 million yuan, and the net profit was 378 million yuan Yuan. In just three years, Ebang International has become the third largest BTC mining machine manufacturer in the world, with a market share of about 11%.
After achieving great success in the mining machine market, Ebang International began to test the capital market. Before going to the US for IPO, Ebang International submitted two listing applications to the Hong Kong Stock Exchange in 2018 and 2019, but both ended in failure because they did not comply with the core principle of "listing adaptability" of the Hong Kong Stock Exchange.
With the failure of two listing applications and the arrival of the cold winter in the encryption market, Yibang International's performance began to decline. According to the information disclosed in the prospectus submitted by Ebang International, Ebang International’s revenue in 2019 was US$109.1 million, a 200% decrease from 2018; its net loss in 2019 was US$41.1 million, a three-fold increase from 2018 .
Therefore, no matter from the downturn of the mining machine industry or the revenue performance of Ebang International, this is not a good time for Ebang IPO. Ebang International is eager to go public for financing, which may be related to the financial difficulties it faces.
Ebang International Class A common stock (EBON) plans to sell 19.26 million shares at a price of US$5.23 per share, with a total fundraising scale of approximately US$100.75 million and a total market value of US$685 million. However, on the opening day, EBON went all the way down, falling as low as $3.81, and finally closed at $5, a drop of 4.4%. In addition to poor performance, the crisis of trust in US and Chinese concept stocks caused by "Ruixing fraud" may also be an important reason for EBON's break.
1.2 Jianan Zhizhi: The stock price fell by 85%
As the "first mining machine stock", Canaan Zhizhi's performance on the first day of opening was completely different from Ebang International. On November 21, 2019, Canaan (CAN.US) landed on Nasdaq. The issue price of CAN was US$9. On the opening day, it rose to as high as US$13, a 40% surge that triggered a trading suspension.
However, the follow-up trend of "the first stock in the blockchain" was surprising. Canaan Yunzhi's stock price has plummeted since then. Although there was a short-term rebound during the period, it still could not change the general trend of decline. As of June 26, 2020, CAN closed at $1.89, a drop of nearly 90% from its highest point.
In addition, Canaan Zhizhi was also shorted twice by short-selling institutions, which also exacerbated the decline in stock prices.
On February 20, the short-selling agency Marcus Aurelius Value released a report against Canaan Technology, accusing it of undisclosed related party transactions and violations involving many customers and distributors. On May 14, White Diamond Research, a U.S. stock research institution, released a short-selling report on Canaan Technology, saying that Canaan Technology currently has problems such as low profit margins for mining machines, failure to transform AI chip business, and unreasonable market value.
Whether the stock price continued to fall or was shorted by institutions, Canaan Zhizhi’s experience showed the capital market’s concerns about the risks of mining machines, a special business. However, if Ebang International fails to make innovations and breakthroughs in products and business, the same encounter may happen again.
1.3 Bitmain: Constant infighting may make it difficult to go public
Both Ebang International and Canaan have twists and turns in their listing journeys, but as the BTC mining machine manufacturer with the largest market share, Bitmain has yet to realize its "dream of ringing the bell".
In September 2018, Bitmain submitted a prospectus to the Hong Kong Stock Exchange, but it also failed because mining machine sales accounted for too much of the company's revenue, which did not meet the core principle of "listing suitability" of the Hong Kong Stock Exchange. Also in the second half of 2018, the two CEOs of Bitmain disagreed on the company's future development direction, laying the groundwork for future "Gong Dou".
In October 2019, Bitmain submitted a listing application to the US Securities Regulatory Commission and plans to complete the listing in early 2020. But after that, Bitmain continued to be plagued by negative news: large-scale layoffs, management shocks and multiple changes of legal person, serious internal fighting between the two founders, technical stagnation, hoarding of mining machines, loss of market share, etc. It seems that the IPO in the United States is gradually moving drifting away.
The listing of Yibang International may boost the morale of the sluggish market in a short period of time, but the future development of the industry still depends on the advancement of technology and the growth of the market. Even after the bell was rung, fierce battles awaited the mining overlords.
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2. Market: The market shrinks and goes down
2.1 The overall market: the market shrinks down
This week, the ChaiNext Digital Asset 100 Index closed at 824 points, down 1.1%. The ChaiNext Digital Asset 100X Index closed at 2124.06 points, down 0.1%.
The total market value of digital tokens this week was US$267.38 billion, a decrease of US$1.51 billion or about 0.6% compared to last week.
The average daily turnover of the digital token market was US$61.62 billion, a decrease of 9.5% from last week, and the average daily turnover rate was 22.6%, a decrease of 2.3% from last week.
This week, the BTC balance on the exchange was 2.371 million, an increase of 74,397 from last week. The balance of ETH on the exchange was 13.317 million, a decrease of 323,917 from last week.
The market value of USDT is 9.18 billion US dollars, and the premium rate of USDT relative to the US dollar has decreased.
2.2 Core tokens: DeFi is on fire, ETH goes up against the trend
The current price of BTC is $9162.9, with a weekly decline of 1.3% and a monthly decline of 0.2%. The average daily turnover is US$18.1 billion, and the average daily turnover rate is 10.5%.
The current price of ETH is 229.67 US dollars, with a weekly increase of 1.1% and a monthly increase of 10%. The average daily turnover is 7.22 billion US dollars, and the average daily turnover rate is 27.6%.
This week, the volatility of mainstream digital tokens has dropped slightly, and the price fluctuations have become flatter than last week. The monthly volatility of BTC decreased by 1.3% from last week; the monthly volatility of ETH decreased by 0.4% from last week.
2.3 BICS industry: The proportion of the media content industry has increased significantly
Among the top five BICS (Blockchain Industry Classification Standard, Blockchain Industry Classification Standard) secondary industries by market value, the proportion of the media content industry has increased significantly; the market value of the public service industry has decreased significantly.
The BICS secondary industries that saw a significant increase in the number of tokens this week were media content and retail e-commerce, while public services and banking services saw a significant decline.
The market is volatile, and we still need to pay attention to controlling positions. BTC has been halved, and the recent volatile market has provided investors with a more suitable price. It is still a good time to invest in digital assets such as BTC. Long-term currency holders may consider regular investment or bargain hunting.
The market is volatile, and we still need to pay attention to controlling positions. BTC has been halved, and the recent volatile market has provided investors with a more suitable price. It is still a good time to invest in digital assets such as BTC. Long-term currency holders may consider regular investment or bargain hunting.
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3. Output and popularity: BTC computing power down
This week, according to Google Trends, the search popularity of the term Bitcoin is 10, and the search popularity of Ethereum is 12.
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4. Industry News: Blockchain was selected as one of the top ten IT information technologies
4.1 The UK Financial Conduct Authority requires encryption companies to submit registration applications
The British Financial Conduct Authority (FCA) reminded British encryption companies that companies must submit a complete registration application before June 30 in order to start subsequent business. For any business that carried on business in the UK before January 10, 2020, and was not registered with the FCA before January 10, 2021, it must cease operations.
4.2 Blockchain was selected as one of the top ten IT information technologies affecting Chinese accounting practitioners
On June 20, the 2020 Top Ten IT information technology selections that affect Chinese accounting practitioners hosted by the Shanghai National Accounting Institute were announced. These information technologies are: financial cloud, electronic invoices, accounting big data technology, electronic files, RPA (robots) process automation), a new generation of ERP, blockchain technology, mobile payment, data mining and online auditing.
Note:
Note:
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
Due to some reasons, some nouns in this article are not very accurate, mainly such as: general certificate, digital certificate, digital currency, currency, token, crowdsale, etc. If readers have any questions, they can call or write to discuss together.
