Blockchain Asia | # 12

Ebang/Canaan/SBI/Gemini/B2C2, China/Japan/Singapore

This briefing covers:

  1. Nasdaq has two out of the three top bitcoin mining machine manufacturers

  2. SBI to launch Japan’s first cryptocurrency fund

  3. SBI’s acquisition of a minority stake in UK digital asset liquidity provider B2C2

  4. Gemini’s expansion to Asia

  5. First iron ore transaction on blockchain


Nasdaq attracts Chinese bitcoin mining machine manufacturers

The third-largest Chinese bitcoin mining machine manufacturer Ebang IPO’d on Nasdaq on June 26, following in the footsteps of Canaan, which went IPO last November. Canaan’s prospectus included the following chart of the market share of the top three manufacturers, among which BitMain dominates the market.

Both Canaan and Ebang have several things in common: their revenues in 2019 dropped close to 65% from 2018; both claimed to try to grow into AI chips to diversify their reliances on mining machines; both listed on Nasdaq, Canaan raised $90 million and Ebang pocketed $100 million.

Right now the market does not buy into Canaan’s AI story. Its stock price has decreased by more than 75% since the IPO last November. Ebang discussed its plan to set up a cryptocurrency exchange outside of China but provided limited details.

BitMain, on the other hand, is less lucky. Its application for IPO with the Hong Kong Exchange was rejected in September 2018 for the reason that BitMain did not have a sustainable business model with a concentrated revenue from mining machines. In October 2019, it filed with the SEC hoping for an IPO in early 2020. However, the company’s senior management has been dragged into a power fight between its two founders.

The Chinese mining machine manufacturers took a hit in their businesses in September 2017, when regulators banned ICOs and cryptocurrency exchanges in Mainland China, and they’ve continued to be negatively impacted by the uncertainty of regulations towards cryptocurrencies and the price fluctuation of Bitcoin.

SBI to launch Japan’s first cryptocurrency fund

In the “Business Report” dated June 26, Japanese financial service company SBI Holdings announced that it was going to launch the first cryptocurrency fund in Japan for retail investors. By participating in the cryptocurrency fund, which will allocate 50% to XRP and the rest equally to Bitcoin and Ether, investors will be able to diversify their portfolios.

According to the report, SBI, through SBI Digital Asset Holdings, is planning to establish a Security Token Offering exchange in Singapore. 14 Japanese companies will be involved in the issuance of STOs.

Last year, SBI introduced a program of paying out dividends in XRP to its investors.

For the full Japanese “Business Report” by SBI, click here.

SBI Financial Services taking a minority stake in UK company B2C2

Again, this is related to SBI Holdings. The subsidiary of SBI Holdings, SBI Financial Services invested $30 million in cryptocurrency trading and liquidity company B2C2. B2C2 will serve as SBI’s main liquidity provider.

For the details, click here.

Gemini’s expansion to Asia

Gemini recently announced the appointment of its Managing Director in Singapore, officially kicking off its expansion into Asia.

From the Monetary Authority of Singapore’s website, Gemini Trust Company has been granted an exemption from holding a license under the “PS Act”.

For more, click here.

First iron ore transaction on Blockchain

BHP, the Australian iron ore supplier, and China Baowu Steel Group, China’s largest steel producer, completed the trial transaction of $14 million in June on a blockchain platform built by a Canadian technology company Minhub.

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Blockchain Asia covers exclusively blockchain and crypto & digital asset developments in Asia, including regulations, investments, new deals and company highlights. It is owned by Kee Global Advisors. For previous posts, please visit here. For any inquiry, please email insight@keeglobaladvisors.com