Ebon's Revenue Fell More than 82% Last Year, with A Net Loss of 32.11 Million Dollars
[ChainDD report] March 5 (ChainDD) According to the Paper.cn, on May 1, Ebon International (NASDAQ: EBON), a producer of bitcoin mining machines, released its first annual report since going public. The annual report shows that in 2020, the operating income of Ebon International is 19,004,000 US dollars, 82.57% lower than that of 109 million US dollars in 2019. Net loss amounted to US $32,111,000, compared to US $41.073 million in 2019, a narrowing of 21.82%.
Ebon stated that the decrease in revenue was mainly due to the combined impact of COVID-19, such as travel restrictions, mandatory quarantines and suspension of business activities, which caused significant disruption and uncertainty to business operations and adversely affected its operating results and financial condition.
As a result of COVID-19, Ebon's chip suppliers reduced production capacity, resulting in raw material shortages in the first half of 2020. Coupled with the halving of Bitcoin, the expected earnings from Bitcoin-related activities such as mining have been significantly affected, resulting in a significant drop in demand and average selling price for Ebon's Bitcoin mining machines.