Ebang International Holdings Inc. has recently stated that due to the outbreak of COVID-19, the Chinese developer of mining hardware experienced a net loss of $6.96 million in the first half of the year 2020.
As the year started the revenue earned by the company was $22.35 million but as months passed the revenue started declining and reached $11.04 million. That means in these six months the revenue plummeted by 51 percent.
Bitcoin Hashpower Sold By Ebang Is Low
The Chinese developer of mining hardware has sold a total of 0.25 million terahash per second (TH/s) of Bitcoin hashpower, in these six months.
However, in the first half of 2019, the mining hardware company sold 1.82 million TH/s. The current figure of supplied TH/s shows that year-over-year company has experienced the fall out of 86 percent.
Recently, Nasdaq Stock Exchange has revealed that Ebang has experienced a slight surge of 0.3 percent to $9.88 in its shares.
In June 2020, Ebang’s stock was listed on Nasdaq’s platform and since then, it has tanked over 30 percent, and later, it was traded at $14.95. At that time also, the value of Ebang came down to $3.80.
COVID-19 Pandemic Affected Ebang
The chairman and the chief executive officer of Ebang, Dong Hu, believes that the Chinese mining hardware is experiencing such big losses because of the outbreak of the global pandemic, COVID-19.
Hu stated that this pandemic has not only affected the health of a person but also the economic condition of the country. The pandemic has brought in the economic recession, not only this, on May 11, Bitcoin scheduled the supply of a token but it was cut off. This also affected the demand for mining equipment, as it went low and miners’ earnings were cut.
The CEO of Ebang, additionally stated, “Our chip suppliers have reduced their production capacity due to the impact of the COVID-19, resulting in our shortage of raw materials during the first six months of 2020.”