Ebang, a Chinese Bitcoin ASIC chip design and mining machines company, is another company affected by the COVID-19. The company reported a significant drop in its revenue generated within the first six months of the year. Following certain measures imposed to curb the virus’s spread, the company’s operations were affected, and sales of computing power declined accordingly.
Notwithstanding, the company could save about $10 million of operating expenses. Also, it launched its Canadian subsidiary today.
Ebang revenue dropped to $11 million
Ebang confirmed the revenue drop in a recent filing with the United States Security and Exchange Commission (SEC). In the first half of 2020, the company garnered a total of $11.04 million in revenue. However, the company gained more than double the revenue during the H1 2019. Precisely, Ebang gained about $22.35 million, which means a 50.6 percent decrease year-over-year.
Additionally, the computational power sales record shaded a significant point compared to the previous report. As of last year, the company sold about 1.82 million Thash/s computational power within the first six months. However, the record dropped to 0.25 million Thash/s in 2020, which represents an 86.02 percent, as per the filing.
Dong Hu, the CEO and chairman of Ebang, largely blamed the coronavirus outbreak as the major factor that spurred the slump. While addressing the issue in the SEC filing, Hu noted that more traveling restrictions affected the sales and operations of the business activities. More so, the company’s chip suppliers reduced their capacity to adjust to the situation. In turn, this resulted in the lack of raw materials, the CEO added.
“The outbreak of the COVID-19 has significantly affected business and manufacturing activities worldwide. Measures to contain COVID-19, such as travel restrictions, mandatory quarantines, and suspension of business activities, have caused severe disruptions and uncertainties to our business operations and adversely affected our results of operations and financial condition,” Hu said.
Still Some Good News
While Ebang noted a slump in its revenue, its net loss lowered to $7.3 million from the previous point of $17.6 million. Today, the company launched its Canadian subsidiary to boost its industrial chain layout, following a separate report published today. Notably, it went public in the Us through an IPO.
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Source: Ebang CEO blames COVID-19, amid 50% drop in H1 2020 revenue