The Covid 19 pandemic has left a deep mark on the half-yearly balance sheet of Ebang International Holdings Inc. The chip designer and manufacturer of Bitcoin mining hardware presented its first-half results on September 25.

For the newcomer to the stock market – the company has been trading on the Nasdaq technology index since the end of June – H1 2020 was anything but a success story. The Bitcoin Mining companys revenues have slumped by over 50 percent compared to the same period last year.

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In the half-year report that the Chinese company filed with the US Securities and Exchange Commission (SEC), the corona eruption is cited as the main reason for the decline in sales. It was not so much the temporary slump in the Bitcoin share price that was behind the loss of sales as supply bottlenecks for the chips that Ebang uses for its Bitcoin miners.

Our chip suppliers have reduced their production capacity due to the effects of COVID-19, which has led to our resource shortage in the first six months of 2020,

Ebang CEO Dong Hu is quoted in the report. According to Hu, the company has reacted in time to the challenges of the Corona crisis:

Given the turbulent social and industrial environment, we have taken timely and proactive measures to ensure the resilience of our business and to enable us to deliver a solid performance once market conditions return to normal.

Ebang wants to diversify with Bitcoin exchanges

Apparently, this also includes Ebang putting out feelers for new sources of income, namely in the direction of block-chain-based financial services.

Given the turbulent social and industrial environment, we have taken timely and proactive measures to ensure the resilience of our business and to enable us to deliver a solid performance once market conditions return to normal.

Apparently, this also includes Ebang putting out feelers for new sources of income, especially in the direction of block-chain-based financial services.

Against this background, our management has actively optimized our earnings structure based on the productivity ratio and has strategically reviewed the expansion into block-chain-based financial services.

Already in June, the Ebang CFO leaked the news that the company wants to expand its activities beyond Bitcoin Mining. There was talk of a planned off-shore exchange, but the CFO was silent at the time about where this would take place. In August, Ebang brought some light into the darkness: the establishment of a subsidiary in Singapore should pave the way for a Bitcoin exchange in the country. Recently, a similar announcement followed for the North American region: On September 28, Ebang announced a new subsidiary in Canada, which is also dedicated to the establishment of a Bitcoin exchange. By expanding its business activities, the company hopes to achieve greater independence from the Bitcoin course.

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