The quick-seller argues Ebang makes “unparalleled claims” to be a market chief, which is “backed by no evidence,” ensuing in EBON shares dumping.
Rapid-seller Hindenburg Analysis is shorting Chinese Bitcoin mining machine producer Ebang International Holdings. This despatched the shares of the firm (EBON) down 20% to $5.53. EBON shares own misplaced 63% of their value since the mid-March excessive.
Ebang made its debut on Nasdaq in June closing 365 days, and at some stage in this era, it has made three fundraising rounds, one in November and two in February this 365 days alone, raking in $170 million in the closing two.
In line with Hindenburg, Ebang “claims” to be a number one bitcoin miner maker, however their analysis “signifies no evidence backs this unparalleled stutter.” It additional goes on to the level that ever since releasing its closing miner in Could perchance maybe 2019, its sales had been dwindling to near-zero, “turning in handiest 6,000 total miners in 1H20.”
The ongoing bull bustle has fueled a surge in fundraising in the crypto sector, which raised $2.6 billion in upright three months, extra than the volume raised in the final closing 365 days.
Hindenburg has also been quick on another Chinese blockchain firm and took quick positions in electrical automobile corporations, including Nikola Corp, Lordstown Motors, insurer Clover Neatly being, and Kandi Technologies Neighborhood Inc prior to now 365 days.
In line with the agency, its analysis printed that in role of using the capital proceeds to invent its replace, Ebang has been transferring the money out of the firm by blueprint of “a assortment of opaque deals with insiders and questionable counterparties.”
Curiously, this week, Ebang also announced the closing of its previously announced finest-efforts practice-on public offering for the sale of 14 million units at a employ mark of US$6.10 per unit, for mixture depraved proceeds of roughly US$85.4 million.
The firm intends to make exercise of its internet proceeds to enlarge its crypto mining replace and for the establishment and operation of the mining farms, crypto replace, and general corporate applications.
As we reported, Ebang announced the launch of its cryptocurrency replace upright this week, which Dong Hu, Chairman, and CEO of the firm, acknowledged, “will not be going to handiest enlarge the revenue sources from our cryptocurrency replace however also optimize the design of our blockchain replace chain.”
AnTy has been serious about the crypto role stout-time for over two years now. Sooner than her blockchain beginnings, she worked with the NGO, Doctor With out Borders as a fundraiser and since then exploring, studying, and creating for diversified replace segments.