Hangzhou-based Chinese chip company says it is accepting Bitcoin as payment

November 14, 2024

By Our Correspondent

Shares of Nano Labs, a China-based designer of crypto mining chips, experienced a modest increase following the announcement that the company will accept Bitcoin as payment for its products and services via a business account on Coinbase.

In a statement released on November 11, the Huangzhou-based firm, which is publicly traded on the Nasdaq, indicated that this initiative reflects its “commitment to embracing the latest in financial technology,” in response to the growing demand for “digital currency transactions within the technology sector.”

Nano Labs emphasized its “proactive stance in the evolving digital economy,” noting that the adoption of cryptocurrency is on the rise, particularly among businesses looking for efficient and secure methods for cross-border transactions. The company asserted that accepting Bitcoin will offer “greater payment flexibility,” although it did not clarify whether it plans to retain the cryptocurrency on its balance sheet.

Following this announcement, shares of the Nasdaq-listed company increased by 2.81%, reaching $3.29. However, this rise was insufficient to counteract a significant decline over the past month, during which the share price has dropped more than 60% from a peak of $8.33. Furthermore, it remains far from the all-time high of $96.20 achieved in July 2022, shortly after the company went public on the Nasdaq.

An increasing number of businesses are now accepting cryptocurrency as a form of payment for various services. For instance, Microsoft permits users of its Xbox store to make purchases using Bitcoin, while McDonald’s has recognized crypto as legal tender in El Salvador and Lugano, Switzerland. Additionally, the NBA team Dallas Mavericks has integrated Bitcoin as a payment option for merchandise and game tickets through BitPay.