Nano Labs Now Accepts Bitcoin for Chip Payments Amid Digital Shift

Jimmy Aki
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On November 11, Nano Labs, a leading Chinese crypto mining-chip maker based in Huangzhou, announced it will start accepting Bitcoin payments for its products and services.

The Nasdaq-listed company introduced the new payment option via Coinbase as part of its strategy to “embrace the latest in financial technology.”

A Strategic Move Towards Bitcoin Payments

According to a press release, Nano Labs noted that Bitcoin adoption aligns with a “proactive stance in the evolving digital economy.” While Nano Labs highlighted Bitcoin’s potential for “greater payment flexibility,” it did not confirm if it will hold Bitcoin on its balance sheet or convert it to fiat currency.

This move reflects a growing demand for “digital currency transactions in the technology sector” and highlights the rising role of cryptocurrency within the industry.

Following the announcement, Nano Labs saw a small uptick in its stock price, with shares climbing 2.81% to $3.29.

Despite this slight gain, Nano Labs’ stock has struggled over the past month, dropping by more than 60% from a previous high of $8.33. Since its Nasdaq debut, its shares have fallen considerably from an all-time high of $96.20, set in July 2022.

Nano Labs’ decision to accept Bitcoin payments comes at a time when cryptocurrency is increasingly integrated into global commerce, with more companies turning to digital currency for greater transaction flexibility.

Over 55% of the global Bitcoin mining network is controlled by Chinese mining pools, as reported by Ki Young Ju, founder and CEO of CryptoQuant. Ju stated that while China’s dominance is substantial, Bitcoin mining is slowly shifting to U.S.-based firms.
https:/twitter.com/ki_young_ju/status/1838140712736711110?s=46

One potential reason Nano Labs may have chosen to accept Bitcoin as payment could be the increasing recognition of Bitcoin ownership as a political and financial priority.

Following the recent U.S. elections, the New York Digital Investment Group (NYDIG) highlighted the growing importance of Bitcoin in investment portfolios. Greg Cipolaro, NYDIG’s global head of research, even warned that “not owning the asset is going to become a liability in the future.”

China’s Evolving Crypto Landscape

Nano Labs’ adoption of Bitcoin payments also occurs within an evolving regulatory environment in China. Although Beijing’s 2021 crackdown on crypto banned mining and trading activities, recent developments hint at a potentially softer stance.

In September, former Chinese finance minister Lou Jiwei called on China to closely monitor advancements in crypto, indicating possible regulatory adjustments.

Moreover, Chinese courts have begun acknowledging Bitcoin’s unique status as a digital asset.
On September 25, a Shanghai Intermediate People’s Court recognized Bitcoin as a “unique and non-replicable” asset with inherent value, while another court made a similar ruling earlier in the month. Although these decisions do not lift the ban, they indicate an increased acceptance of Bitcoin’s legitimacy within China’s financial landscape.

In Hong Kong, regulators are moving toward a more crypto-friendly approach. The Hong Kong Securities and Futures Commission (SFC) approved the region’s first spot Bitcoin and Ether ETFs earlier this year, signaling a positive direction for cryptocurrency in Asia despite mainland China’s restrictions.

Nano Labs’ adoption of Bitcoin payments underscores the wider trend of cryptocurrency integration in business transactions, particularly for cross-border exchanges. Crypto payments offer increased security, efficiency, and flexibility, making them attractive to companies operating in the global market.

As more businesses adopt Bitcoin payments, market analysts predict this trend will continue. While the value of cryptocurrencies can be volatile, their utility and benefits are compelling for global companies.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.