Ebang International Issues Open Letter to Shareholders - Seite 3

2. We are not related to Yindou or any of Yindou’s schemes alleged in the Hindenburg Report.

We cannot, and are not in the position to, comment on Hindenburg’s allegations against Yindou. Nonetheless, we confirm that we have never engaged in any business relationship with Yindou, and our listing application with the Hong Kong Stock Exchange (the “HKSE”) had nothing to do with Yindou. It is true that our listing application with HKSE expired without any action by HKSE. To our knowledge, in addition to Ebang, there are other companies in the bitcoin mining machine industry whose listing applications with HKSE also expired, and one of them completed its US listing before Ebang.

3. We remain committed to the designing and manufacturing of Bitcoin mining machines.

Our results of operations, especially the sales of mining machines, have been and are expected to continue to be subject to significant impact from the fluctuations of Bitcoin price and market conditions. However, we remain committed to the designing and manufacturing of Bitcoin mining machines as well as mining machines for other cryptocurrencies because our management team believes that there is a strong demand for high-performance mining machines. We have recently completed the design of the 6 nm ASIC chip and expect to officially launch several new models of high-performance Bitcoin mining machines this summer. With sufficient working capital, we believe that we are financially well-positioned for the mass production of our mining machines.

4. We developed and own software and technologies of our cryptocurrency exchange.

We did not purchase a white label online exchange solution package from Bluehelix. Instead, our in-house research and development team was in charge of the development of the core software of the cryptocurrency exchange, Ebonex. Therefore, we are very proud of our ownership in the technologies embedded in the Ebonex platform. As of the date hereof, we are preparing for the software copyright application in connection with our Ebonex platform in China. To accelerate the development progress, we purchased certain software source codes from Bluehelix, and Ebonex has also used AWS cloud services as well as licensed software from third party software providers such as Tencent. We understand this is a common practice in the industry.