What occurred
Shares of Ebang Worldwide (NASDAQ:EBON) gained 34.5% in February, in accordance with information from S&P Global Market Intelligence. The cryptocurrency firm’s inventory jumped following bulletins concerning the firm’s cryptocurrency mining chips and new mining companies.
The blockchain know-how firm printed a press launch on Feb. 4 saying that it had accomplished the design of a chip for simultaneous mining of Dogecoin and Litecoin. The corporate adopted the announcement with information that it could be increasing its personal cryptocurrency mining operations, prompting its inventory to soar.
Picture supply: Getty Photos.
So what
Ebang introduced on Feb. 17 that it could be launching a brand new Bitcoin mining operation. The corporate adopted that announcement with one other press launch on Feb. 25 that it could be launching Dogecoin and Litecoin mining operations. Pleasure surrounding these bulletins allowed the blockchain company to shut out February with sturdy double-digit good points regardless of the large sell-off for growth-dependent tech shares that occurred on the finish of the month.
Now what
Ebang inventory has misplaced floor early in March’s buying and selling. The corporate’s share worth has dipped 22.8% within the month thus far.
Ebang has a market capitalization of roughly $1 billion and trades at roughly 8.25 instances this yr’s anticipated gross sales. Progress-dependent tech shares might stay pressured if buyers proceed to look to vitality and industrial shares and fixed-income investments as most popular pandemic restoration performs, however Ebang’s shut connection to the cryptocurrency market makes its efficiency much more tough to chart. The corporate’s share worth continues to be up roughly 23% from market shut on the day of its June 26 preliminary public providing, and buyers ought to method the inventory with the understanding that extra volatility (for higher or worse) is probably going within the playing cards.
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