Nano Labs seeks financial boost with Bitcoin payments amid financial struggles

Chinese fabless IC design company Nano Labs 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 hitting an all-time high of $90,000.

Nanolabs turn to Bitcoin

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

Importantly, Nano Labs’ decision to accept Bitcoin as payment comes at a time when the company is facing 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 time in the stock market, with its stock price dropping significantly from its all-time high of over $96.

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

In a bid to strengthen its position, the company has now decided to accept Bitcoin payments, hoping to take advantage of the growing digital currency trend.

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 deliver added value to customers around the world. With this new capability, the company is able to attract a broader range of partners and customers who value progressive financial options.

Bitcoin drives up stock prices

Following the success of companies like MicroStrategy, Semler Scientific, and Metaplanet, which saw their stocks rise following Bitcoin adoption, Nano Labs hopes to replicate similar results. Shares of the economic intelligence firm led by Michael Saylor, for example, hit a record high this week. It has seen an increase of over 2,000% since the adoption of Bitcoin in August 2020.

Meanwhile, medical diagnostics company Semler Scientific, which adopted cryptocurrency as its primary cash reserve asset in May this year, has seen its shares rise almost 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 performed strongly following the announcement of new Bitcoin investments, which began in April. The company’s year-to-date gains have now reached 1,067%.