After announcing that it is now accepting Bitcoin as payment for its products and services, shares in China-based crypto mining chip designer Nano Labs increased slightly.
The Huangzhou-based crypto mining chip manufacturer, which is listed on the Nasdaq, announced in a statement on November 11 that the decision was made as part of a “commitment to embracing the latest in financial technology” in response to the growing demand for “digital currency transactions in the technology sector.”
Nano Labs Adopts Bitcoin As Payment Method
Nano Labs stated it was adopting a “proactive stance” in the evolving digital economy as crypto “adoption continues to grow, particularly among businesses seeking efficient and secure cross-border transactions.”
Nano Labs stated that adopting Bitcoin will result in “greater payment flexibility.” However, it did not provide any information regarding whether it plans to maintain the cryptocurrency on its balance sheet.
The Nasdaq-listed company’s shares increased by 2.81% to $3.29 after the announcement.
Bitcoin Regulation, China, and Coinbase
Nano Labs’ share price experienced a minor increase after an announcement regarding accepting Bitcoin as a payment method. Source: Nasdaq
Nevertheless, the price has declined by more than 60% from a high of $8.33 in the past month, which has not been sufficient to counteract a sharp downturn. It is also far from the all-time high of $96.20 achieved in July 2022, shortly after the company was listed on the Nasdaq.
Many organizations are now accepting cryptocurrency as payment for certain services.
Users of the Xbox store can utilize Bitcoin as a payment method. McDonald’s has implemented cryptocurrency as a legal tender in El Salvador and Lugano, Switzerland.
The Dallas Mavericks, an NBA franchise, have also implemented Bitcoin as a payment method for club products and game tickets via BitPay.
The love-hate relationship between China and cryptocurrency
In May 2021, Beijing implemented a crackdown on cryptocurrency activities, which resulted in the closure of numerous mining companies and the suspension of cryptocurrency trading. Nevertheless, the authorities’ posture has softened in recent years, despite an attempt to impose restrictions on Tether in January.
Former Chinese finance minister Lou Jiwei urged China to thoroughly examine the advancements in crypto during a speech at the Tsinghua Wudaokou Chief Economists Forum in Beijing on September 28.
In a report dated September 25, the Shanghai Intermediate People’s Court in China acknowledged the scarcity and inherent value of Bitcoin. It recognized it as a unique and non-replicable digital asset. On September 1, an additional Chinese court reached a comparable conclusion.
The Securities and Futures Commission (SFC) of Hong Kong also authorized the first spot of Bitcoin and Ether ETFs on April 24 this year.
