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Ebang, a major player in the Bitcoin (BTC) mining industry, has filed an application with the US Securities and Exchange Commission, registering an Initial Public Offering (IPO) for $100 million.

Ebang is seeking to distribute Class A common stock with a par value of $0.00013 per share. The company intends to list on Nasdaq Global Market or the New York Stock Exchange under the code name EBON. Upcoming primexbt exchange, also offering separate tokens, although not ipo, they will raise capital through tokens

This filing marks nearly two years since the company has sought to conduct an IPO in Hong Kong. After filing in June 2018, the request was shelved until the end of that year.

Ebang faces recession in 2020

In 2020, 82% of Ebang’s revenue comes from application-specific integrated circuit (ASIC) chips and fabless integrated circuits for miners.

Ebang’s revenue last year was $109 million. Reduced demand for mining machines, coupled with the falling price of cryptocurrencies, has resulted in a 66% drop in company growth, compared to 319 million in 2019 revenue.

In 2019, the company achieved a gross profit of $24.4 million, while last year lost a total of $30.6 million. Ebang’s chip sales fell from 415,930 units at an average price of 737 USD, to 289,953 chips sold at a unit price of about 304 USD.

See more: Many Americans are interested in Blockchain and Cryptocurrency

Demand for mining machines is directly related to Bitcoin’s price fluctuations

In its filing, Ebang asserts that the amount of demand for their products is directly dependent on the rise and fall of the price of Bitcoin.

“The correlation between market demand and the unit price of mining machines with the economic profit of the machine is mainly influenced by the price of Bitcoin. Rising Bitcoin price will stimulate demand in the mining machine market. From there, Ebang’s products will cost more. In contrast, the Bitcoin price drop in 2018 and the first quarter of 2019 caused a significant drop in the sales and average selling price of miners. Although the Bitcoin price has started to recover since Q2 2019, our activity has often lagged behind the rise of this cryptocurrency.” Ebang added.

Ebang develops altcoin mining chip

Ebang’s filing also states that the company has completed the exclusive design of the 8 nanometer (nm) and 7 nm ASC chip products. The 8 nm type is ready for mass production as soon as “market conditions permit”.

Additionally, Ebang is developing “exclusive 5 nm ASIC chips and mining machines” for Altcoins, including Litecoin (LTC) and Monero (XMR).

The company said it intends to start “applying blockchain technology to non-cryptocurrency industries, such as financial services and healthcare.”

Canaan’s IPO fails to live up to expectations

In November 2020, mining machine maker Canaan Creative raised $90 million in its IPO — less than the company’s $400 million target in Q1.

Since listing on primexbt exchange at a par value of $9, Canaan’s share price has dropped more than 50% to $4.23.