The claims made in Hindenburg research that the fall in the share price of Chinese Bitcoin mining company Ebang is premised on pilfering by American Investor;s cash.
Ebang has been described as the current chapter in China Hustle and which they are disguised as Bitcoin mining play according to the report of Hindenburg Research. Through Public Offerings in the United States, Ebang has raised millions of dollars under the pretense of operating as Bitcoin (BTC) mining company.
In a series of opaque deals with insiders and questionable counter parties, the money raised in the funding was reportedly channeled out of the company.
Since 2019 that Ebang described themselves as leading Bitcoin mining producer, they have not released new product and sales have decreased steadily since.
Ebang, along with Canaan Creative, is one of only two Chinese Bitcoin mining companies publicly traded on U.S. stock markets. The share price of NASDAQ: EBON has fallen 20% since the start of the week. After trading at $6.35 on Monday, the share price had dropped to $5.00 by Tuesday’s close, equating to 21% losses. The stock has since bounced back to $5.03, leaving weekly losses in excess of 20%.
The Hindenburg report alleges that Ebang saw the writing on the wall for its mining rig business, which was said to produce inferior machines to local competitors. The company is said to have then spun itself into a cryptocurrency exchange, dubbed Ebonex. The initial announcement apparently boosted the EBON market cap up to $922 million.