Shares of Chinese cryptocurrency mining chip designer Nano Labs rose slightly after announcing that it now accepts Bitcoin as payment for its goods and services through its Coinbase business account.
on November 11 statementThe Nasdaq-listed Huangzhou-based cryptocurrency mining chipmaker said the move was part of a “commitment to leverage the latest financial technologies” amid rising demand for “digital currency transactions in the technology sector.”
Nano Labs said it is taking an “active stance in the evolving digital economy” as “cryptocurrency adoption continues to grow, particularly among companies seeking efficient and secure cross-border transactions.”
According to Nano Labs, adopting Bitcoin (BTC) will provide “greater payment flexibility,” but no details were provided on whether it intends to keep the cryptocurrency on its balance sheet.
Shares of the Nasdaq-listed company rose 2.81% to $3.29 after the announcement.
Nano Labs’ share price saw a slight augment after announcing its acceptance of Bitcoin as a payment option. Source: Nasdaq
But that wasn’t enough to offset the company’s stock decline last month, which fell more than 60% from a high of $8.33. It’s also nowhere near the all-time high of $96.20 set in July 2022, shortly after the company listed on the Nasdaq exchange.
An increasing number of companies now accept cryptocurrencies as payment for some of their services.
Microsoft allows users of its Xbox store to pay in Bitcoin. McDonald’s has adopted cryptocurrency as legal tender at its locations in El Salvador and Lugano, Switzerland.
NBA franchise Dallas Mavericks has also adopted Bitcoin as a payment option for club merchandise and game tickets via BitPay.
China’s love-hate relationship with cryptocurrencies
Beijing cracked down on crypto activities in May 2021, closing many mining companies and suspending cryptocurrency trading. However, the authorities’ stance appears to have softened recently, despite an attempt to crack down on Tether in January.
In September, former Chinese Finance Minister Lou Jiwei urged China to closely examine its progress in cryptography during a speech at the Tsinghua Wudaokou Chief Economists’ Forum on September 28 in Beijing.
Related: China Still Controls 55% of Bitcoin’s Hashrate Despite Cryptocurrency Ban
Days earlier, China’s Shanghai People’s Court declared Bitcoin a unique and unreplicable digital asset and confirmed its rarity and inherent value in a September 25 report. Another Chinese court reached a similar conclusion on September 1.
Earlier this year, Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), also approved the first Bitcoin and Ether (ETH) spot ETFs on April 24.
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