Ebang International Holdings Inc. (EBON) stock prices were up by 1.95% as of the market closing on October 25th, 2021. This brought the price per share up to USD$2.09. Subsequent pre-market fluctuations saw the stock surge by 22.49%, bringing it up to USD$2.56.
Doubling Down on Cryptocurrency
The past few years have seen the company allocate resources towards the research and development, and sales of Bitcoin mining machines. This move carries some inherent risk on account of the impact of both macro and micro environmental factors. These factors include the global political and regulatory stances regarding cryptocurrency in general, economic competitions, chip production capacity and supply, as well as the volatility of Bitcoin prices. In order to facilitate long term growth, EBON stock plans to aggressively develop its financial technology business. This will be in conjunction with its R&D and sales efforts of mining machines of Bitcoin and other cryptocurrencies, such as Litecoin and Dogecoin.
EBON Stock’s Diversification
EBON stock intends to gradually launch software-as-a-service businesses on several of its platforms, with the hope of providing a full set of fintech solutions to existing potential clients who lack technical support and security. The company’s fintech businesses have seen increased investments that include, but are not limited to, talent recruitment, equipment purchase, software development, and customer acquisition. These investments are hoped to facilitate continuous and stable revenue for the company. The mining farm segment comprises the company’s original machine hosting business, as well as the newly derived self-mining business.
Total revenues for the first half of fiscal 2021 were reported at USD$18.30 million by EBON stock. This represents a year over year increase of 65.69% from the USD$11.04 million reported in the prior year quarter. This yearly increase in total net revenues was largely attributable to the increase of Bitcoin prices over the course of the first six months of fiscal 2021. This resulted in an increase in projected returns on Bitcoin related activities, such as mining of cryptocurrency. Accordingly, the company has reported a substantial increase in demand for its Bitcoin mining machines.
Future Outlook for EBON Stock
The company reported a promising first half of fiscal 2021, as evidenced by the strength of its financial reports for the first two quarters of the year. EBON stock is keen to maintain the momentum generated over the course of the first half of the year into the second half and beyond. Current and potential investors are hopeful that management will be able to effectively leverage the resources at their disposal. This is hoped to facilitate significant and sustained increases in shareholder value over the long term.