Nano Labs' products are used to mine cryptocurrencies including Bitcoin (BTC) and Ether (ETH). The company now plans to transform into a metaverse business, providing computing power for gaming and entertainment.
Nano Labs, a well-known Hangzhou-based Chinese mining chip designer, has applied for an IPO in the US to raise USD 50 million on Nasdaq. According to released information, the crypto mining chip maker has filed with SEC, for its upcoming public offering. The application for American depository shares is occurring amid a slew of regulatory difficulties in China and the United States, causing a shortage of Chinese issuers' overseas fundraising. There are only two IPOs happened in 2022 in two main exchanges in the US, raising USD 49.5 million, compared to 28 IPOs and USD 5.8 billion was raised last year.
Nano Labs' products are used to mine cryptocurrencies including Bitcoin (BTC) and Ether (ETH). In 2020, the company's earnings were derived solely from China-based clients. To expand its business overseas, a subsidiary was established in Singapore last year. The company now plans to transform into a metaverse business, providing computing power for gaming and entertainment. A metaverse is a new online environment built based on blockchain-related technology. Players may create avatars and own digital property in these virtual realms, sometimes referred to as Web3 applications.
Co-founder Kong Jianping and Sun Qifeng hold the majority of Nano Labs Shares, with 32.8% and 22.3% stakes, respectively. Kong was previously the co-chairman and a director at rival Canaan, which became the first cryptocurrency-mining rig maker to list in the U.S. in November 2019. In August 2020, he departed Canaan amid a corporate power struggle, according to reports from China then. After China regulators forbade crypto trading in May 2021, the hash rate briefly went to zero, indicating a difficult business environment for mining chip designers. Its transformation to metaverse may bring life to the dry lands.