china bitcoin

China is known for its tough stance on crypto mining. Previously, in 2018, they had banned foreign exchanges, and more recently in 2021 the nation banned cryptocurrency in its entirety. Now, Chinese crypto companies are in even more hot water following the decline of the cryptocurrency market.

Chinese Crypto Mining Companies

A trifecta of China-based companies involved in the Bitcoin mining industry has been struggling greatly as financial markets sank over the past few months.


Ebang International Holdings Inc (EBON) has been hit the hardest. The China-based maker of crypto mining machines released a statement recently saying that it had been warned by the NASDAQ that it could be delisted following 30 consecutive days of trading below $1 per share. The company is currently trading for $0.0477, down 85% YTD and down over 90% from its IPO price of $5.23.

If Ebang wants to avoid being delisted, it has to find a way to raise its share price above $1 for at least 10 consecutive days. Thankfully, it’s got six months to meet this goal but even if Ebang is unsuccessful, it will have a further 180-day grace period to hit the $1 threshold.

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Another two China-based crypto mining companies, Canaan Inc (CAN), a rival mining machine maker, and BIT Mining Ltd (BTCM), a mining pool operator, have also faired poorly. The former announced it would be repurchasing $6.6 million worth of warrants it issued last year. Whereas BIT Mining, in an attempt to stay afloat, raised $16 million by issuing its own warrants.

Growing Costs

While each of these companies its different in its own ways, they share one thing in common. They’re all heavily influenced by the price of Bitcoin. When prices drop, companies in the industry will struggle. As most of these companies’ assets are either in cryptocurrency or the equipment to mine it, a drop in demand for either can be catastrophic.

BTC Price 27.06

Combine the declining demand for cryptocurrency with increased costs for electricity and the viability of a mining operation drops significantly. While each of these companies is suffering for the time being, once the market picks up again we’ll likely see some impressive growth.

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