Ebang Soars 21% on Plan to Launch Cryptocurrency Exchange

The news follows Bitcoin's surge to a record high of $29,000.
CapitalWatch StaffDec 31,2020,14:49

The stock in Ebang International Holdings Inc. (Nasdaq: EBON) surged 21% Thursday before markets opened on news that it plans to launch a cryptocurrency exchange in the first quarter of 2021.

The Hangzhou-based company, which makes bitcoin mining equipment, ends the year 2020 with an announcement that it has completed internal testing and is starting public testing of its cryptocurrency exchange before a planned official launch.

In response, shares in Ebang soared to $5.91 per share in pre-market trading.

Dong Hu, Ebang’s chairman and chief executive, added that the company is pursuing expansion in other segments.

Hu said, “We will also explore other business opportunities in the blockchain and cryptocurrency industry such as establishing mining farms and cryptocurrency mining to optimize the structure of our offerings in the blockchain industry value chain.”

Ebang International positions itself as a blockchain technology company with strong application-specific integrated circuit (ASIC) chip design capability. Since its $100.8 million IPO in late June, the company briefly peaked at $14.95 per share and traded as low as $3.80. In November, it pursued a follow-on public offering.

The expected launch of Ebang’s new product follows Bitcoin's strong run that found it above the level of $29,000 for the first time on Wednesday. On Thursday morning, BTC was down to $28,150.

The year 2020 has seen a lot of record-breaking for Bitcoin following its halving in May. We'll wait and see what 2021 will bring for digital currency. One thing is certain: More regulatory acceptance is on the way after institutional investors, along with PayPal, Square, and Visa, buy in on cryptocurrency.

Topics:ebon, ebang, bitcoin, crypto