Nano Labs seeks financial boost with Bitcoin payments amid financial struggles

Chinese fabless IC design company Nano Labs has announced that it has opened a Coinbase account and started accepting Bitcoin payments for its products.

Its decision to expand its global transaction options coincides with Bitcoin reaching an all-time high of $90,000.

Nano Labs turns to Bitcoin

In its official press release, Nano Labs stated that it is responding to the growing demand for digital currency transactions in the technology sector by accepting Bitcoin payments. As the adoption of cryptocurrencies increases, especially among businesses looking for efficient and secure methods for cross-border transactions, the company said its move reflects its intention to adapt to these changes.

It’s important to note that Nano Labs’ decision to accept Bitcoin as a payment method comes at a time when the company has been navigating financial challenges, including a significant decline in its stock performance. After raising $50 million to go public in 2022, Nano Labs has had a rough go on the stock market, with its share price falling significantly from its all-time high of more than $96.

Shortly thereafter, it received a deficiency letter from Nasdaq, stating that it currently does not meet the minimum market value of public equity shares (MVPHS) requirement of $15 million. The notice was issued on July 11. However, Nano Labs managed to turn things around, meeting Nasdaq’s criteria in October.

In an effort to increase its position, the company has decided to accept Bitcoin payments, hoping to take advantage of the growing trend of the digital currency.

The Huangzhou-based company added:

“Nano Labs’ acceptance of Bitcoin payments aligns with its long-term vision to stay at the forefront of technological advancements and provide added value to customers around the world. With this new capability, the company is positioned to attract a wider range of partners and customers who value progressive financial options.”

Bitcoin boosts stock prices

Following the success of companies like MicroStrategy, Semler Scientific, and Metaplanet, which saw their stocks soar after adopting Bitcoin, Nano Labs hopes to replicate similar results. Shares of the business intelligence firm led by Michael Saylor, for example, rose to an all-time high this week. It has witnessed an increase of over 2,000% since adopting Bitcoin in August 2020.

Meanwhile, medical diagnostics company Semler Scientific, which adopted the cryptocurrency as its main treasury reserve asset in May this year, has seen its shares rise nearly 150% since then. While its revenue fell, the company benefited from an increase in the fair value of its Bitcoin holdings, which now total 1,058 BTC.

Metaplanet shares also saw a strong performance following the announcement of new investments in Bitcoin, which began in April. The company’s year-to-date earnings have reached 1,067%.

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