China-based cryptocurrency mining chip design company Nano Labs now accepts Bitcoin as payment for its products through Coinbase business accounts, according to a statement on November 11.
The company said it adopted Bitcoin payments in response to growing demand for digital currency options in the technology industry. It added that the payment flexibility is aimed at benefiting customers and partners, especially as businesses around the world adopt cryptocurrencies for efficient and secure cross-border transactions.
Nano Labs said the move puts it in a good position to attract a wide audience of technologically advanced customers who prioritize flexible digital payment systems.
Nano Labs was founded in 2019 and specializes in fabless IC design. The company also focuses on developing high-throughput computing (HTC) chips, high-performance computing (HPC) chips, smart network interface cards (NICs), and other advanced computing solutions.
stock price performance
In July 2022, Nano Labs raised $50 million to go public in the United States. However, the stock price has slumped since its IPO, dropping about 95% since it began trading that year.
Earlier this year, Nasdaq reportedly notified Nano Labs that the company's stock had fallen below the minimum market capitalization for publicly traded stock (MVPHS) of $15 million for 30 consecutive business days.
The company fixed the issue and met Nasdaq's requirements by maintaining MVPHS of $15 million for the 10-day period ending Oct. 9.
Nano Labs' decision to accept Bitcoin may help offset recent stock performance. Bitcoin-related stocks of several microcap companies, including Semler Scientific and Metaplanet, have soared this year following their decisions to embrace the top digital asset.
China's position
As a China-based company, Nano Labs' adoption of Bitcoin could signal a subtle shift in China's traditionally restrictive crypto policies.
Over the past few years, China has maintained a strict regulatory regime that prohibits financial institutions from engaging in cryptocurrency trading or mining activities.
Despite these measures, the Asian country remains a major force in the global cryptocurrency industry, controlling more than half of the Bitcoin network's hashrate.
Meanwhile, recent calls for a policy reassessment by figures like former Vice-Minister of Finance Zhu Guangyao could mean that China's approach to digital currencies could change to align with global trends favoring broader cryptocurrency adoption. It suggests that there is a sex.
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