China’s Nano Labs embraces Bitcoin as payment option

Nano Labs, a Hangzhou-based fabless integrated circuit (IC) design company, has officially begun accepting Bitcoin as a payment method for its products through a business account with Coinbase. This announcement, made on November 11, 2024, highlights the company’s proactive approach in embracing cryptocurrency within the technology sector.

Key Details:

• Payment via Bitcoin: Nano Labs will now accept Bitcoin as payment for its cryptocurrency mining chips, marking a significant move in the tech and cryptocurrency sectors.
• Strategic Decision: The company stated that this decision reflects the growing demand for crypto-based transactions, particularly for efficient and secure cross-border payments. Nano Labs emphasized that cryptocurrency adoption continues to rise, particularly among businesses looking for faster and more secure financial transactions.
  

  “As cryptocurrency adoption continues to grow, particularly among businesses seeking efficient and secure cross-border transactions, the company’s acceptance of payments in Bitcoin highlights its proactive stance in the evolving digital economy.”

Nano Labs’ Long-Term Vision:

• While it is still unclear whether Nano Labs plans to hold Bitcoin on its balance sheet, the company noted that accepting Bitcoin aligns with its long-term vision of integrating cryptocurrencies into its operations. This aligns with the company’s strategic goals as the digital economy continues to evolve.
• Following the announcement, Nano Labs’ shares saw a 5.6% increase, reaching $3.40 in pre-market trading according to Nasdaq data.

Company Background:

• Founded: Nano Labs was established in 2019 by Kong Jianping and Sun Qifeng.
• Public Listing: The company went public in July 2022, raising $20 million in its U.S. IPO, despite initially targeting $50 million.
• Business Model: Nano Labs operates as a fabless IC design and product solution provider, focusing on cryptocurrency mining chips. The company’s key products include the Cuckoo 1.0, Cuckoo 2.0, and Darkbird 1.0 chips.
• Revenue Sources: The majority of Nano Labs’ revenue comes from the Chinese market, as per PitchBook data.

Nano Labs’ decision to accept Bitcoin as payment for its products underscores the company’s commitment to staying at the forefront of the digital economy and expanding its role in the cryptocurrency mining hardware market. By embracing Bitcoin, Nano Labs is positioning itself to meet the growing demand for crypto-related technology and financial operations, aligning its business with the broader shift toward digital currencies.