The lawsuit comes on the heels of a research report that highlights the allegedly misleading business practices.
Hindenburg’s report is a self-described “cautionary tale” for investors willing to jump blindly into publicly traded mining stocks.
The company's shares jumped 55% after the announcement.
The proceeds will be used primarily for research, development, production and sale of equipment and expanding its mining business through the establishment and operation of crypto mining farms.
The new venture is expected to increase revenue and "optimize" its product offering structure.
Bitcoin mining equipment maker Ebang announced Thursday it is preparing to officially launch a cryptocurrency exchange in the first quarter of 2021.
The move is part of the bitcoin mining machine producer's plan to build a digital asset financial service platform.
Nasdaq-listed bitcoin miner manufacturer Ebang said the pandemic had disrupted its supply chain and led to a significant drop in revenue.
Affected mining centers in the area may see a notable increase in electricity costs.
Ebang, one of the major manufacturers of bitcoin mining equipment, hopes an exchange could double total revenue by 2022.
The Chinese firm also revealed its anticipated share price in its updated filing with the U.S. SEC.
Bitcoin mining hardware manufacturer Ebang wants to raise $100 million through a U.S. IPO. But that could be a risky investment, CoinDesk Research's Matt Yamamoto reports.
Ebang International Holdings, one of the leading makers of bitcoin mining equipment, is taking another stab at going public, this time in the U.S.
The CEO of the Hong Kong Stock Exchange has seemingly questioned the IPO viability of crypto mining companies in new comments.
Crypto miner maker Ebang has refiled its draft IPO prospectus in Hong Kong, indicating a downturn in business in Q3.