{"id":137708,"date":"2020-06-28T11:00:28","date_gmt":"2020-06-28T10:00:28","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=137708"},"modified":"2020-06-29T00:17:51","modified_gmt":"2020-06-28T23:17:51","slug":"bitmex-research-why-a-crypto-mining-companys-ipo-is-unlikely-to-be-successful","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/bitmex-research-why-a-crypto-mining-companys-ipo-is-unlikely-to-be-successful\/","title":{"rendered":"Research: Why a crypto mining company\u2019s IPO is unlikely to be successful"},"content":{"rendered":"<p>The Chinese-based Bitcoin mining giant Ebang is the latest crypto company to <a href=\"https:\/\/www.nasdaq.com\/articles\/crypto-mining-company-ebang-international-prices-us-ipo-slightly-below-midpoint-at-%245.23\">list on the public markets<\/a>. Debuting on the Nasdaq with a $685 million evaluation, the company was able to raise over $100 million.<\/p>\n<p>Its stock price has seen some turbulence since listing, as it appears that investors are conflicted as to what the company\u2019s true value is.<\/p>\n<p>That being said, one prominent research group does not believe that Ebang\u2019s Initial Public Offering (IPO) will be met with long-term success.<\/p>\n<p>They peg this possibility on a few key reasons, including mounting tensions between the US and China, competing mining firm Canaan\u2019s recent profit warnings, and the company\u2019s \u201cweak market positioning.\u201d<\/p>\n<h2><strong>Ebang latest crypto company to list on public markets<\/strong><\/h2>\n<p>News of Ebang\u2019s IPO first broke in April of this year when the company <a href=\"https:\/\/cryptoslate.com\/after-bitmain-and-canaan-bitcoin-miner-ebang-is-latest-to-plan-100-million-ipo\/\">filed all the required paperwork<\/a> to start the listing proceedings.<\/p>\n<p>The listing \u2013 which took place this past week \u2013 allowed the company to raise a total of $101 million by selling 19.3 million shares at $5.23.<\/p>\n<p>This was below the mid-point of the listing range for the company\u2019s shares, which was set at $5.25.<\/p>\n<p>Shortly after public trading began, Ebang shares (EBON) on the Nasdaq fell to lows of under $4.00. This selloff was met with some heavy buying pressure that sent them back towards $5.00.<\/p>\n<p>In aftermarket trading on Friday, EBON concluded the week trading at $4.56. At the moment, this places the company\u2019s market capitalization at approximately $655 million.<\/p>\n<p>Competing mining firm <a href=\"https:\/\/cryptoslate.com\/companies\/canaan\/\">Canaan<\/a> has seen incredibly poor performance since its IPO, which has been attributed to write-downs following the initial listing. The company does anticipate their profitability to start climbing towards the end of 2020.<\/p>\n<figure id=\"attachment_137710\" aria-describedby=\"caption-attachment-137710\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-137710\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Canaan-1024x764.jpg\" alt=\"\" width=\"1024\" height=\"764\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Canaan-1024x764.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Canaan-300x224.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Canaan-768x573.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Canaan.jpg 1244w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-137710\" class=\"wp-caption-text\">Canaan Stock Price versus Bitcoin (via BitMEX Research)<\/figcaption><\/figure>\n<h2><strong>BitMEX Research claims Ebang stock unlikely to see success in coming months<\/strong><strong>\u00a0<\/strong><\/h2>\n<p><a href=\"https:\/\/cryptoslate.com\/companies\/bitmex\/\">BitMEX<\/a> Research \u2013 the research arm of the popular margin trading platform \u2013 <a href=\"https:\/\/twitter.com\/BitMEXResearch\/status\/1272840973689724928\">recently explained<\/a> that they believe there are three factors suggesting that the crypto mining firm\u2019s IPO will not ultimately prove to be successful.<\/p>\n<p>They point to rising tensions between the US and China, Canaan\u2019s poor performance, and their weak market positioning as three primary reasons to support their claim.<\/p>\n<blockquote><p>\u201cIn April 2020, Ebang filed for an IPO in the US. However, given the current political tensions between the US and China, the Canaan profit warning & Ebang\u2019s relatively weak market positioning, we think it will be difficult for Ebang to successfully pull off an IPO.\u201d<\/p><\/blockquote>\n<figure id=\"attachment_137711\" aria-describedby=\"caption-attachment-137711\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-137711\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Ebang-1024x584.jpg\" alt=\"Crypto\" width=\"1024\" height=\"584\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Ebang-1024x584.jpg 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Ebang-300x171.jpg 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Ebang-768x438.jpg 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Ebang-1536x877.jpg 1536w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/Ebang.jpg 1780w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-137711\" class=\"wp-caption-text\">Ebang Financial Overview (via BitMEX Research)<\/figcaption><\/figure>\n<p>Because investing in a Bitcoin mining firm is largely a bet on the success of Bitcoin from a price perspective, it may make more sense for investors looking to gain exposure to the crypto markets to buy spot BTC or shares of Grayscales BTC Trust (GBTC).<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Chinese-based Bitcoin mining giant Ebang is the latest crypto company to list on the public markets. Debuting on the Nasdaq with a $685 million evaluation, the company was able to raise over $100 million. Its stock price has seen some turbulence since listing, as it appears that investors are conflicted as to what the [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":136897,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2376],"tags":[],"prediction_market_topic":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Research: Why a crypto mining company\u2019s IPO is unlikely to be successful<\/title>\n<meta name=\"description\" content=\"One prominent crypto research group does not believe that Ebang\u2019s Initial Public Offering (IPO) will be met with long-term success.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/bitmex-research-why-a-crypto-mining-companys-ipo-is-unlikely-to-be-successful\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Research: Why a crypto mining company\u2019s IPO is unlikely to be successful\" \/>\n<meta property=\"og:description\" content=\"One prominent crypto research group does not believe that Ebang\u2019s Initial Public Offering (IPO) will be met with long-term success.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/bitmex-research-why-a-crypto-mining-companys-ipo-is-unlikely-to-be-successful\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-06-28T10:00:28+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-06-28T23:17:51+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/06\/bitcoin-mining.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/bitmex-research-why-a-crypto-mining-companys-ipo-is-unlikely-to-be-successful\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/bitmex-research-why-a-crypto-mining-companys-ipo-is-unlikely-to-be-successful\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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He owns a non-life-changing sum of Bitcoin and enjoys day trading.","url":"https:\/\/cryptoslate.com\/author\/cole-petersen\/"}]}},"_links":{"self":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/137708"}],"collection":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/users\/174"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/comments?post=137708"}],"version-history":[{"count":4,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/137708\/revisions"}],"predecessor-version":[{"id":137768,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/posts\/137708\/revisions\/137768"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media\/136897"}],"wp:attachment":[{"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/media?parent=137708"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/categories?post=137708"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/tags?post=137708"},{"taxonomy":"prediction_market_topic","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/prediction_market_topic?post=137708"},{"taxonomy":"post_folder","embeddable":true,"href":"https:\/\/cryptoslate.com\/wp-json\/wp\/v2\/post_folder?post=137708"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}