Ebang, one of Chinese Bitcoin mining machine manufacturers, has posted a sharp drop in revenue generated in the first half of the year compared to the previous year. Giving reasons for the slump in Ebang revenue, the chairman blamed the recent outbreak of coronavirus as the major cause. Meanwhile, the company has launched a subsidiary in Canada today.
Ebang revenue shades 50 percent from the previous record
Following the company’s latest filing with the United States Security and Exchange Commission (SEC), the Ebang revenue in the first six months of the year totaled $11.04 million. When compared to the revenue generated in H1 2019 (at $22.35 million), the recent amount represents a 50.6 percent decrease year-over-year (YoY).
The company also posted a poor sale of computing power within the same period. Precisely, only 0.25 million Thash/s was sold in the first six months of the year. However, the company sold as high as 1.82 million Thash/s last year, representing an 86.02 percent drop YoY, according to the SEC filing.
Ebang chairman blames COVID-19
While commenting on the sharp drop of Ebang revenue, the chairman and CEO of the company, Dong Hu, related the development to the coronavirus outbreak. Hu mentioned that the business operations were affected due to COVID-19 measures. Also, the company’s chip suppliers reduced their production capacity, which consequently led to a shortage of raw materials.
The outbreak of the COVID-19 has significantly affected business and manufacturing activities worldwide,” Hu commented. “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.
At the same, the company had seen its net loss reduced to $7.3 million in H1 2020, compared to the $17.6 million recorded last year. In a separate report, the company revealed the launching of its wholly-owned subsidiary in Canada to improve its industrial chain layout.