• The stock price of Ebang International Holdings Inc (NASDAQ: EBON) is trading at over 20% pre-market. This is why it happened.

The stock price of Ebang International Holdings Inc (NASDAQ: EBON) is trading at over 20% pre-market. Investors appear to be responding to Ebang International holding a board meeting and passing a resolution to launch Bitcoin mining business.

According to the resolution, Ebang plans to operate its Bitcoin mining business by adopting a combination of deploying self-manufactured mining machines and mining machines purchased from other manufacturers as well as leasing computing powers from other mining farms. And at the same time, Ebang also expects to invest in data center constructions to provide support for Bitcoin mining activities.

But there is no guarantee that Ebang’s operation of Bitcoin mining business will commence as planned or at all, or that such business operation will improve the company’s financial performance or results of operation.

KEY QUOTE:

“With the development of Bitcoin mining business, the Company will not only just continue to position itself as a Bitcoin mining machine producer. This move will increase our revenue in cryptocurrency business and optimize our product offering structure. We believe it will help the Company’s transformation from a hardware manufacturer to a blockchain company with comprehensive involvements in its industry chain.”

– Dong Hu, Chairman and CEO of the Ebang

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.

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