Shares of Ebang Worldwide Holdings (NASDAQ:EBON) jumped on Friday despite the fact that many different cryptocurrency shares have been down. That is doubtless as a result of most public cryptocurrency miners solely mine Bitcoin (CRYPTO:BTC), and Bitcoin is down immediately. Nevertheless, Ebang Worldwide additionally mines Dogecoin (CRYPTO:DOGE), and Dogecoin has soared to all-time highs. In consequence, Ebang Worldwide inventory was up 22% as of 10:45 a.m. EDT.
Actually, Ebang Worldwide differs from lots of its publicly traded friends. Within the first place, it is a vertically built-in enterprise, that means it each creates the cryptocurrency mining machines and in addition mines varied cryptocurrencies. Particularly, it has gear for Bitcoin, Dogecoin, and Litecoin. Over the previous 24 hours, Bitcoin is down 2% and Litecoin is flat, however Dogecoin is up a shocking 177%.
Because it’s one of many few public mining firms related to Dogecoin, it seems buyers are leaping again into Ebang Worldwide inventory due to its sudden run-up.
Ebang Worldwide inventory has fallen greater than 50% lately in response to a short report — a short-seller is somebody who’s betting on the inventory happening. The report got here out on April 6. Nevertheless, on April 13, Ebang Worldwide’s CEO penned an open letter to shareholders addressing the report. Due to this fact, it is cheap to imagine that Dogecoin isn’t the one catalyst for Ebang Worldwide inventory immediately. It is also doubtless that this response from administration helps buyers regain some misplaced confidence.
So who’s proper, the short-sellers or Ebang Worldwide administration? Most retail buyers, myself included, do not have first-hand information of the internal working of this enterprise. Due to this fact, we do not have something concrete to go off of apart from enterprise outcomes as they arrive in. In time, the basics will affirm or deny bearish sentiment.
Ebang Worldwide is anticipated to launch full-year outcomes for 2020 quickly. A single monetary report is not definitive. However will probably be an necessary step in validating administration’s expressed objectives.
This text represents the opinion of the author, who might disagree with the “official” advice place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even one among our personal — helps us all assume critically about investing and make selections that assist us turn out to be smarter, happier, and richer.
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