Thursday, May 13, 2021

Ebang International Holding Inc (EBON) Stock Prices Experience Volatility Following the Hindenburg Report

Situated in an already volatile cryptocurrency sector, Ebang International Holdings Inc (EBON) stock prices experienced compounded volatility following the release of the Hindenburg report. EBON stock prices experienced a dip of just over 6% at market close, settling in at USD$4.77. Pre-market fluctuation is seeing an upswing in the territory of 0.84%.


5 Stocks Under $10 That Are Poised to Take Off

Investing in stocks under $10 could significantly increase the returns on your portfolio, especially if you pick the right stocks! Within this report you will find 5 top stocks that offer investors huge upside potential and the best bang for their buck.

Add them to your watchlist before they take off!

Get the Top 5 Stocks Now!

Sponsored



Hindenburg Shorts EBON stock

The Hindenburg Report was published by the short-selling Hindenburg Research company. Following this report, Hindenburg adopted a significant short position on EBON stocks. Shortly after, EBON stock prices crashing by a significant 12%.

Mismanagement of Shareholder Investments


A Backdoor Way To Profit From Today’s Crypto Bull Market

Even if you’re not actively in crypto, you deserve to know what’s actually going on...

Because while leading assets such as Bitcoin (BTC) and Ethereum (ETH) are climbing in value, a select group of public “crypto stocks” are surging right along with them. More importantly, these stocks are outpacing the returns these leading crypto assets aren already producing.

Click here to get the full story… along with our long list of backdoor Bitcoin strategies. It’s free. .

Sponsored


The crux of the report alleges malfeasance in regard to the allocation of capital the Chinese company raised from US investors. The Hindenburg report accuses EBON of redirecting the raised capital to benefit insiders and their relatives instead of using the funds for their expressed purpose.

Where Did the Money Go?

Having first been listed on Nasdaq in June of 2020, EBON conducted a round of fundraising in November of 2020. It went on to conduct two additional rounds in February of 2021, raising USD$170 million. Hindenburg alleges that these significant capital proceeds ended up being moved out of the company in a string of questionable deals that lack transparency. USD$103 million were used in bond purchases linked to a Hong-Kong based underwriter, AMTD International, while USD$21 million were used for the repayment of loans to EBON Chairman and CEO’s relative.

A Leading Crypto Mining Producer?

Hindenburg further claims that despite EBON’s self-proclamation of being a leading bitcoin mining machine producer, there is little evidence to support this grandiose statement. In fact, they argue that the release of EBON’s final miner was in May 2019, with a very disappointing 6000 miners being sold in the entire first half of 2020.

Concerns Over Ebonex

While Mr. Hu, EBON Chairman and CEO, has announced the official launch of their cryptocurrency exchange as a result of significant investments into the required research and development, Hindenburg has voiced reservations. In their report, Hindenburg suggests the numbers reported for Ebonex, EBON’s cryptocurrency exchange, were grossly inflated to the point of being fictitious. They also point to the sheer lack of online presence to discount claims of Ebonex’s popularity.

EBON’s Rebuttal to the Allegations

EBON has released a statement to the public and to its shareholders that it plans to debunk the accusations contained in the Hindenburg report, suggesting the report is rife with errors, unsupported speculation and inaccurate interpretations of events. If the Hindenburg report turns out to be inaccurate or unduly exaggerated, EBON share prices could see some promising returns based on the development of revenue generating products and services.

Latest news

What is behind the fall of Torchlight Energy Resources Inc. (NASDAQ: TRCH) stock?

Torchlight Energy Resources, Inc. (NASDAQ: TRCH), a growth oil and gas exploration company specializing in the acquisition and development of highly profitable domestic oil...

Eros STX Global Corporation (ESGC) stock is declining: Here is the reason why?

Eros STX Global Corporation (NYSE ESGC) a global multinational media company that acquires, produces, and distributes films, television shows, and digital content issued its...

Yum China Holdings Inc. (YUMC): The Most Important Numbers You Should Know

Yum China Holdings Inc. (YUMC), which operates Taco Bell Restaurants, KFC Restaurants, and Pizza Hut Restaurants in China, has published its first-quarter report for...

Why shares of Akerna Corp. (KERN) stock are up today?

Akerna (KERN), a cannabis technology company focusing to connect data points in the global cannabis supply chain and developer of the cannabis industry's first...

Related news

What is behind the fall of Torchlight Energy Resources Inc. (NASDAQ: TRCH) stock?

Torchlight Energy Resources, Inc. (NASDAQ: TRCH), a growth oil and gas exploration company specializing in the acquisition and development of highly profitable domestic oil...

Eros STX Global Corporation (ESGC) stock is declining: Here is the reason why?

Eros STX Global Corporation (NYSE ESGC) a global multinational media company that acquires, produces, and distributes films, television shows, and digital content issued its...

Yum China Holdings Inc. (YUMC): The Most Important Numbers You Should Know

Yum China Holdings Inc. (YUMC), which operates Taco Bell Restaurants, KFC Restaurants, and Pizza Hut Restaurants in China, has published its first-quarter report for...

Why shares of Akerna Corp. (KERN) stock are up today?

Akerna (KERN), a cannabis technology company focusing to connect data points in the global cannabis supply chain and developer of the cannabis industry's first...

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Get The Best Stocks To Trade Every Day!

Join now to get the NewsHeater.com pre-market morning brief 100% free

We do not sell or share your information with anyone.