Nano Labs' Shares Saw Modest Rise After Announcing Payment Acceptance of BTC

Shares of Nano Labs, a China-based crypto mining chip designer listed on Nasdaq, saw a modest 2.81% increase to $3.29 following the announcement that it would begin accepting Bitcoin as payment through a Coinbase business account.

The Huangzhou-based company stated on 11 November that the move aligns with its commitment to embracing cutting-edge financial technology as demand for digital currency transactions grows within the tech sector.

Nano Labs emphasized its proactive stance in the evolving digital economy, highlighting the increasing interest in crypto for secure, efficient cross-border payments.

While the company noted that adopting Bitcoin would offer greater payment flexibility, it did not clarify whether it would hold the cryptocurrency on its balance sheet.

Despite the uptick, the company's shares have fallen more than 60% over the past month, significantly below their 2022 highs.

Is China Warming Up to Crypto?

Since Beijing's crackdown on crypto activities in May 2021, which included shutting down mining operations and suspending crypto trading, China has maintained a strict regulatory stance.

However, recent developments suggest a potential shift, as authorities' attitudes seem to have softened, despite attempts to curb Tether's operations earlier this year.

Nano Labs' decision to accept Bitcoin could indicate a subtle change in China's traditionally restrictive crypto policies.

Despite stringent regulations prohibiting institutional crypto transactions and mining, China remains a dominant player in the global crypto market, controlling over half of Bitcoin's network hashrate.

Moreover, increasing calls for a policy reassessment, such as those from former Deputy Finance Minister Zhu Guangyao, suggest that China may be considering an alignment with global trends towards broader crypto adoption.