Ebang IPO Preview (Part 2): Tough Competition from Bitmain and Canaan

Ebang IPO Preview (Part 1): Lower Sales but Higher Operating Profit Versus Canaan Inc.

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Equity Analyst, LightStream Research

Supun Walpola

Equity Analyst

Long-Short Analysis on Japan, Asia and the World

LightStream Research

LightStream conducts quantitatively rigorous and data-driven analysis with a focus on Japan and Asia.

We consistently cover the Tech, Consumer and Industrial sectors, and provide ECM and Events coverage more broadly.

We supplement traditional qualitative insights from company relationships with a robust quantitative foundation that examines as much historical data as is available.
We further refine the accuracy of our insights and calls through the use of alternative data to flesh out current trends, and through a valuation framework that emphasises non-superficial peer group selection and a proper attempt to understand the metrics and changes that have driven security valuations in the past.

Equity Capital Markets

Ebang International Holdings I / Equity Capital Markets

<p>Our initial thoughts on <a href="https://www.smartkarma.com/entities/ebang-international-holdings-inc" target="_blank" data-smartkarma-citation="entities:27247:1" rel="noopener">Ebang (EBANG HK)</a>’s IPO is negative. We did not find anything likeable about Ebang apart from maybe the timing of the IPO. The bull thesis for <a href="https://www.smartkarma.com/entities/bitcoin-usd" target="_blank" data-smartkarma-citation="entities:25895:1" rel="noopener">Bitcoin (XBTUSD CURNCY)</a> is currently strong and it is likely that Ebang would interest investors who are looking to get indirect exposure to Bitcoin. However, Ebang’s past results suggest that the company has not been able to benefit during historical Bitcoin bull-runs. Moreover, the fact that Ebang has fallen so far behind its competition in terms of technology, makes its products less attractive for miners, especially during a bull-run, where mining difficulty would increase further.  </p>

Our initial thoughts on Ebang (EBANG HK)’s IPO is negative. We did not find anything likeable about Ebang apart from maybe the timing of the IPO. The bull thesis for Bitcoin (XBTUSD CURNCY) is currently strong and it is likely that Ebang would interest investors who are looking to get indirect exposure to Bitcoin. However, Ebang’s past results suggest that the company has not been able to benefit during historical Bitcoin bull-runs. Moreover, the fact that Ebang has fallen so far behind its competition in terms of technology, makes its products less attractive for miners, especially during a bull-run, where mining difficulty would increase further.  

Ebang International Holdings I

Ebang IPO: More Troubled Than Bitcoin