Shares of Ebang International (Nasdaq: EBON) were slammed nearly 22% in early trading Thursday after announcing a follow-on public offering.
The Hangzhou-based bitcoin mining firm said in a statement today that it is offering 4 million “units,” which each include one Class A ordinary share and one warrant to purchase one half of one Class A ordinary share. Each two warrants will have an exercise price of $5.50.
The sole placement agent on the deal is Univest Securities, LLC.
The news today follows its IPO in June, in which Ebang raised $101 million through the sale of 19.3 million shares at $5.23 each. Up until early October, Ebang’s stock was performing relatively well since its IPO. However, shares have been on a slide since then, plunging 47% to date.
Meanwhile, it’s been an entirely different story for its bitcoin rival Canaan (Nasdaq: CAN), whose shares have surged 76% to date since its close on Oct. 1. Cannan made its debut on Nasdaq last November.
Established in 2010, Ebang designs application-specific integrated circuits (ASICs) and makes mining equipment for Bitcoin. It is also developing 5-nm ASIC chips and mining machines for non-Bitcoin cryptocurrencies such as Litecoin and Monero. All its chips over the past two years were made by South Korea's Samsung Electronics (OTC: SSNLF), according to its prospectus earlier this year.
In the six months through June, Ebang’s revenues jumped 51% year-over-year to $11.04 million. Its net loss narrowed to $6.96 million versus $19.07 million in the same period in the preceding year.