How Ebang International shares jumped 20% on a quiet cryptocurrency day

What happened

Actions of Ebang International (NASDAQ: EBON) rose 20.9% Thursday morning, despite a relatively calm day for cryptocurrencies and associated stocks. The crypto-mining hardware builder has achieved this rare feat by announcing an exciting new line of business.

So what

On a exceptionally stable day for this volatile industry, where Bitcoin (CRYPTO: BTC) stocks were trading barely 2% higher and Ethereum (CRYPTO: ETH) was down 2%, Ebang posted a big gain by announcing a brand new business idea. The company will soon start operating Litecoin (CRYPTO: LTC) and Dogecoin (CRYPTO: DOGE) tokens, using a combination of its own mining hardware and computing power purchased from outside sources.

Image source: Getty Images.

Now what

This announcement follows last week’s decision to start mining Bitcoin tokens in a similar fashion. The mining machinery specialist is putting some skin in the game here, and mining operations can also help the company better understand improvements in hardware design that could improve raw performance and better value for mining chips. from Ebang.

The specific cryptocurrency choices also make a lot of sense. Litecoin started as a hard fork of Bitcoin in 2011. Dogecoin, in turn, derived from Litecoin’s code base two years later. The three digital currencies in Ebang’s mining plans all use similar mining technologies.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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