Benzinga | Feb 17, 2021 10:56AM EST

Ebang Prepares To Launch Bitcoin Mining Business

* Ebang International Holdings Inc. (NASDAQ: EBON) intends to launch its Bitcoin mining business through the combined deployment of self-manufactured mining machines and third-party mining machines and leasing computing powers under a resolution approved in its board meeting.

* The company also plans to invest in data center constructions in support of Bitcoin mining activities.

* "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 the 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," said Ebang CEO Dong Hu.

* Ebang raised $70 million in an upsized secondary offering last week. The offering proceeds were meant to be utilized for R&D, production, and sales of ASICs and equipment related to cryptocurrencies, expansion of its cryptocurrency mining business and establishment and operation of cryptocurrency mining farms, and general corporate purposes.

* Price action: EBON shares are up 21.6% at $9.58 on the last check Wednesday.