Shares of Nano Labs, a Chinese crypto mining chip designer, experienced a modest increase following the company’s announcement that it is now accepting Bitcoin as payment through its Coinbase business account. This decision reflects the company’s proactive approach to integrating advanced financial technologies to meet the growing demand for digital currency in the tech sector.
In a statement released on November 11, Nano Labs emphasized its dedication to advancing digital transactions. The company highlighted that the adoption of Bitcoin is in response to a rising trend among businesses seeking effective and secure methods for international transactions. While it noted the benefits of enhanced payment flexibility from accepting Bitcoin , further details regarding its intention to maintain cryptocurrency on its balance sheet were not provided.
After the announcement, the company’s shares rose by 2.81% to $3.29. Despite this uptick, the stock has seen a significant decline over the past month, falling over 60% from a previous peak of $8.33. The current share price remains a long way from its historic high of $96.20, achieved shortly after Nano Labs’ NASDAQ listing in July 2022.
The trend of companies accepting cryptocurrency is gaining momentum, with notable examples including Microsoft, which allows Bitcoin payments in its Xbox store, and McDonald’s, which recognizes crypto as legal tender in certain international locations. Additionally, the Dallas Mavericks, an NBA team, accept Bitcoin for merchandise and tickets through a partnership with BitPay.
China’s complex relationship with cryptocurrency has evolved since a crackdown in May 2021 which led to the closure of numerous mining operations. Recent developments suggest a more lenient approach from the authorities. In September, a former Chinese finance minister called for a reassessment of crypto advancements, while judicial recognition of Bitcoin ’s value has been reported from various courts. Moreover, Hong Kong’s financial regulator has taken steps to approve spot Bitcoin and Ether ETFs, signaling a shift in the region’s regulatory landscape.
