Latest Bitcoin Meltdown Pressures Chinese Crypto Companies

The recent massive selloffs in bitcoin and other crypto currencies have left Ebang, Canaan and BIT Mining coping with tanking share prices and dire business outlooks Key Takeaways: Ebang, a maker of cryptocurrency mining machines, has been warned about potential delisting from the Nasdaq after its stock remained below $1 for a prolonged period Rival crypto mining equipment maker Canaan repurchased warrants it issued last year after its stock plunged to levels well below the exercise price By Warren Yang The recent meltdown in cryptocurrency markets is shaking up the…

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Covid Bites Canaan in First Quarter, But Advance Orders Bode Well for Second

Leading crypto mining machine maker aims to ride the recent bitcoin slump by allocating more resources to its own mining Key Takeaways Canaan’s first-quarter sales more than tripled, but Covid-related disruptions prevented it from meeting its own previous guidance Despite allocating more resources to crypto mining, Canaan’s crypto assets remain a fraction of its sales By Rajiv Sekhri Canaan Inc. (CAN.US), one of the world’s largest bitcoin mining machine makers, looked impressive last week when it reported its first-quarter revenue rose 237% year-on-year. The huge jump seemed quite positive, especially…

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U.S.-Bound China IPO Train Could Resume by Summer, Latest Signals Show

Chinese securities regulator issues draft rule changes that would allow U.S.-listed Chinese firms’ auditors to share information with the SEC Key Takeaways: China’s securities regulator has published draft rule changes that would allow information sharing between Chinese company auditors and the U.S. securities regulator Chinese securities regulator says it is ‘committed to supporting eligible companies of all types to list or offer securities in overseas markets’ By Doug Young A few small IPOs are floating up in the headlines as we kick off the new week, signaling spring could finally…

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BIT Mining’s Radical Shift Brings Back Revenue, But Profits Remain Elusive

Company reported a surge in fourth-quarter revenue after switching to crypto mining a year ago, but shares fell as it failed to post a profit Key takeaways: •      BIT Mining’s revenue surged to $495.8 million in the fourth quarter of 2021 from $800,000 a year earlier, as it shifted from previous businesses to crypto mining •      Despite the surge, high costs resulted in a wider net loss from the year-ago period before the shift  By Warren Yang In the span of just a few months last year, BIT Mining Ltd.…

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Ebang’s Australia Progress Excites – or Not – or Maybe, as Bitcoin Gyrates

Company’s shares jumped 14% after it disclosed receiving regulatory approval for a digital currency exchange in Australia, but then fell, only to jump again in next two trading days Key takeaways: •      Ebang said last Thursday that its Australian unit received regulatory approval to register as a digital currency exchange operator in the country •      A 14% gain in the company’s shares after the news was erased the next day as bitcoin prices fell, highlighting the close link between its stock and the bellwether currency By Warren Yang Publicly traded…

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FAST NEWS: BIT Mining’s New Ohio Mine Achieves Power Milestone

The latest: Cryptocurrency mining company BIT Mining Ltd. (BCTM.US) announced on Tuesday that its mining site under construction in the U.S. state of Ohio has achieved approximately 50 megawatts (MW) of power capacity. Looking up: The project is designed for total electrical generation capacity of 150 MW, making completion of one-third of that an important milestone. When the facility opens, BIT Mining will be able to operate its own operations there and also provide services to third-party miners. Take Note: The cost of operating cryptocurrency mining operations in the U.S. is…

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Canaan Turns to Bitcoin Mining Even as Crypto Hunters Face Mounting Challenges

The crypto mining machine manufacturer added mining to its portfolio after revenue from its main business dropped for two consecutive years Key takeaways: •      Canaan has entered the bitcoin mining business with deals to jointly operate facilities in Kazakhstan •      The move comes as such mining operations become increasingly difficult due to growing bans by individual countries, often worried about strains on their energy infrastructure By Warren Yang Why only sell cryptocurrency mining machines to others when you could just as easily use them to seek out your own new…

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BIT Mining’s Rapid Move into Crypto Space Shows Early Signs of Depth

Former lottery ticket seller’s stock follows highly volatile bitcoin price, as its new business model shows positive results Key points: To survive in its new form as crypto miner BIT Mining must grow as quickly as possible, control costs, and efficiently integrate its acquisitions The company must also steer clear of Chinese oversight, become greener, and accept that its destiny will often be shaped by forces beyond its control By Ben Livesey The recently minted BIT Mining Ltd. (NYSE: BTCM) is doing what it says on the label – mining…

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Cryptocurrency Wannabe Ebang Mines Investors for Funds with Talk of Transformation

Mining machine manufacturer moves into exchange operation and mining business in bid to pump up modest revenue base Major takeaways: Ebang is a company trying to transform from a minor mining equipment maker to a diversified cryptocurrency product and service provider The company’s high market value compared with its modest revenue makes it look highly speculative as an investment By Doug Young The recent explosion in bitcoin has created a gold rush among Chinese startups, drawing newcomers into the space and leading existing players to expand into new related areas.…

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