Ebang Shares Slump After Hindenburg Research Takes Short Position

Nasdaq

Shares of Chinese Bitcoin mining machine manufacturer Ebang fell sharply on Tuesday following a report from Hindenburg Capital that claims the firm misled investors about investment allocations.

A lengthy report from Hindenburg Capital alleges that, of the roughly $375 million the mining machine manufacturer raised from investors since going public in June 2020, some $103 million went toward “bond purchases linked to its U.S. underwriter.”

How To Get Free Crypto  

Shares of Ebang were down over 15% on the news.

Related: Market Wrap: Bitcoin Futures Premium Rises Again Despite Bitcoin’s Relatively Flat Performance

The report also claims that the company “directed $21 million to repay related-party loans to Ebang Chairman/CEO Dong Hu’s relative.” Additionally, the report says that its mining machine business is faltering, only producing 6,000 machines in the first half of 2020.

To shore up its mining business (or, as Hindenburg put it, to “pivot the story”), Ebang launched a cryptocurrency exchange called Ebonex yesterday.

Ebang did not respond to CoinDesk’s request for comment by press time.

Hindenburg took out a short position following its research, the report discloses, and the firm attempts to use Ebang as an example of caveat emptor for Western investors jumping at publicly traded crypto stocks before doing their due diligence.

Related Stories

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Coinbase Banner  

Go to Source
Author: CoinDesk


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.