Dogecoin is one of the hottest cryptocurrencies of 2021 with retail traders pouring into the meme crypto. A publicly traded company could be capitalizing on the growth of Dogecoin with plans to create a mining business for the cryptocurrency.
What Happened: Ebang International Holdings (NASDAQ:EBON) announced in February it was launching a Litecoin and Dogecoin mining business.
The company’s mining business will include self-manufactured mining machines and mining machines purchased from other manufacturers. The company will also lease computing powers from mining farms to allow Litecoin and Dogecoin to be mined simultaneously.
“We will develop LTC and Doge mining on the basis of our Bitcoin mining business. The development of the business will further promote our related cryptocurrency-focused businesses and increase our revenue,” Ebang CEO Dong Hu said at the time.
Related Link: If You Invested $1,000 In Dogecoin On Jan. 1, 2021, Here’s How Much You’d Have Now
Why It’s Important: Ebang is transforming from being a hardware manufacturer to a diversified and vertically integrated blockchain company.
The company has a new 5nm ASIC mining chip, which could give the company a “competitive edge” in the bitcoin mining industry, according to Bitcoin.com Ebang is also developing a new 6nm ASIC mining chip.
Ebang has an exclusive license of the AsicBoost patent that can increase the performance of Bitcoin mining by 20%.
The increased news around Dogecoin and the valuation increase could make Dogecoin mining software a growth market.
Ebang is one of several companies that have seen strong demand for their cryptocurrency miners.
The company was also the subject of a short report from Hindenburg Research earlier this month. Hindenburg said Ebang is “yet another crypto China hustle absconding with US investor cash.”
Price Action: Shares of Ebang closed Monday down 10% to $4.33. Dogecoin trades at $0.399 at the time of writing.
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