Chinese bitcoin miner manufacturer Ebang has raised $70 million in a follow-on public offering (FPO) that closed on Wednesday.
As part of the offering, the Nasdaq-listed company sold 14 million units at $5 per unit. Each unit consists of one class A ordinary share of Ebang and one warrant to purchase one-half of its one class A ordinary share. Each two warrants have an exercise price per class A ordinary share of $5.25.
With fresh capital at hand, Ebang looks to expand its bitcoin miner manufacturing business, launch a bitcoin mining business, and use the funds for general corporate purposes, including working capital needs.
The launch of the bitcoin mining business will help increase Ebang's revenue, said chairman and CEO Dong Hu. "We believe it will help the company's transformation from a hardware manufacturer to a blockchain company with comprehensive involvements in its industry chain," said Hu.
Ebang went public in June 2020 and raised more than $100 million in an initial public offering (IPO) at the time. The company also plans to launch a cryptocurrency exchange later this year, as The Block has reported previously.
Ebang's share price has risen more than 30% in the last 24 hours and is currently trading at around $11, according to tracker TradingView.