Ebang International Holdings Inc. -- Crypto King In Town

Summary

• EBON is a provider if crypto mining equipment with ambitious plans to become a trifecta bitcoin miner and crypto exchange operator.
• The Company's core equipment business suffered in 2019-2020 as crypto worked through a bear market but is about to boom with currencies like $BTC.X hitting all time highs in 2021.
• Mining equipment market leader Bitmain is expected to go public any day at a $40-50BN or several times revenues. Comps including CAN trade at 50%-100% premiums showing EBON's relative value.
• EBON recently acquired a license to algorithms/IP that gives their equipment a speed and energy advantage in mining versus its peers. We think this provides LT differentiation and should lead to share gains.
• Miners such as MARA and RIOT are making major moves in sync with the runs by Bitcoin, Etherium and alt coins while exchanges such as Coinbase are coming to market with IPOs valuing them in the billions. EBON is a unique sympathy trade on resurgence in mining equipment demand as guided by CAN in its recent report, as a new entrant into mining itself which is garnering high valuations and investor interest, and in crypto exchanges which will be front and center for the Wall Street IPO crowd.  Against this backdrop, we initiate EBON with a TRADING BUY.  Against the backdrop of all time highs and demand in anything crypto, and given the stock has retraced to near its recent secondary offering price of $5.50/unit ($5/share 1/2 warrant @ $5.50) it's time to buy EBON in our view. We expect the stock to trade to all time highs in the $15+ range when it launches mining and exchange services this quarter and guides, like CAN, for robust equipment sales in 4Q20-2021.

Former WSJ and II ranked sell-side analyst covering special situations and TMT.