China-based cryptocurrency mining chip designer, Nano Labs, has announced it will now accept Bitcoin as payment through its Coinbase business account, according to a statement released on November 11. The decision to adopt Bitcoin payments is in response to the rising demand for digital currency options within the technology industry. This payment option aims to provide greater flexibility for clients and partners, particularly as businesses around the globe adopt crypto for more efficient and secure cross-border transactions.
Appeal to Tech-Focused Clients
Nano Labs highlighted that this shift is expected to enhance its appeal to a broader base of tech-savvy clients who prioritize flexible digital payment solutions. The company, established in 2019, specializes in fabless IC design and focuses on high-throughput computing (HTC) chips, high-performance computing (HPC) chips, smart network interface cards (NICs), and other advanced computing technologies.
Stock Performance and Market Challenges
Nano Labs went public in the United States in July 2022, raising $50 million. However, its stock has struggled since the IPO, experiencing a nearly 95% drop in value. Earlier this year, the company was notified by Nasdaq that its stock value had fallen below the minimum required market value of publicly held shares (MVPHS) of $15 million for a 30-day period. Nano Labs addressed this by reaching the MVPHS requirement for 10 days by October 9.
Accepting Bitcoin could positively impact Nano Labs’ performance, as many Bitcoin-related stocks, like those of micro-cap firms Semler Scientific and Metaplanet, have surged following their adoption of the digital asset.
Evolving Regulatory Landscape in China
Nano Labs’ adoption of Bitcoin might reflect gradual changes in China’s typically strict stance on cryptocurrency. Despite China’s stringent regulations prohibiting institutions from engaging in crypto transactions and mining, the country remains influential in the global crypto sector, controlling over half of the Bitcoin network’s hashrate.
Additionally, recent discussions from figures like former Deputy Finance Minister Zhu Guangyao, who called for a policy reassessment, suggest China’s approach to digital currencies may adapt to align with the global trend toward broader crypto acceptance.
The post China-based Nano Labs turns to Bitcoin payments amid potential policy shift in the country appeared first on CryptoSlate.
