Please ensure Javascript is enabled for purposes of website accessibility

Why Ebang International's Shares Popped 22.2% on Monday

By Travis Hoium - Mar 15, 2021 at 4:50PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Bitcoin is sending the stock on a wild ride again.

What happened 

Shares of Ebang International Holdings (EBON 4.93%) rose as much as 22.2% in early trading on Monday on some positive news about Bitcoin (BTC 3.35%). Shares settled as the day went on and closed 8.6% higher. 

So what

Ebang launched the beta phase of a cryptocurrency exchange today with plans to expand to a wider audience next month. It didn't hurt that late on Sunday, Bitcoin was trading over $60,000, although it's fallen since then and is now about $56,500. 

A bitcoin laying in the dirt.

Image source: Getty Images.

It will take time to see just how much revenue Ebang's exchange can generate. But right now there's a lot of money being made by Bitcoin intermediaries, so this could be a highly profitable business by the end of the year. 

Now what

Stocks like this trade wildly depending on whether Bitcoin is up or down on any given day. That's going to be the trend for the foreseeable future given how volatile the cryptocurrency has been. But the hope is that an exchange will turn Ebang into a growth stock long term as Bitcoin mining and trading becomes more mainstream. The company is still losing money for now, so watch for that to potentially change as this new business gets off the ground.  

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Ebang International Holdings Inc. Stock Quote
Ebang International Holdings Inc.
$0.77 (4.93%) $0.04
Bitcoin Stock Quote
$30,305.51 (3.35%) $981.18

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.