Shares in China-based crypto mining-chip designer Nano Labs rose slightly after announcing it will accept Bitcoin as payment for its goods and services through a business account on Coinbase.

In a Nov. 11 statement, the Huangzhou-based mining-chip designer, which is listed on the Nasdaq, said the move was part of a “commitment to embracing the latest in financial technology” as demand increases for “digital currency transactions in the technology sector.”

Nano Labs said it was taking a “proactive stance in the evolving digital economy” as crypto “adoption continues to grow, particularly among businesses seeking efficient and secure cross-border transactions.” 

According to Nano Labs, adopting Bitcoin will provide “greater payment flexibility,” but it didn’t say whether it intends to keep the cryptocurrency on its balance sheet.

Following the announcement, shares in the Nasdaq-listed company rose 2.81% to $3.29.

Still, it wasn’t enough to offset a share slump over the last month, with the price falling over 60% from a high of $8.33. It’s also nowhere near the all-time high of $96.20 set in July 2022, soon after the company was listed on the Nasdaq. 

A growing number of companies are now accepting crypto as payment for some of their services.

Microsoft allows users of its Xbox store to pay in Bitcoin. McDonald’s has adopted crypto as legal tender in El Salvador and Lugano, Switzerland. 

The NBA franchise Dallas Mavericks adopted Bitcoin as a payment option for club products and game tickets through BitPay. 

China’s love-hate relationship with crypto

Beijing cracked down on crypto activities in May 2021, shutting down multiple mining firms and suspending crypto trading. However, authorities’ stance appears to have relaxed recently, despite an attempt to crack down on Tether in January. 

In September, former Chinese finance minister Lou Jiwei urged China to closely examine advancements in crypto during a speech at the Sept. 28 Tsinghua Wudaokou Chief Economists Forum in Beijing.

A few days earlier, a Shanghai Intermediate People’s Court in China recognized Bitcoin as a unique and non-replicable digital asset and acknowledged its scarcity and inherent value in a Sept. 25. report. Another Chinese court came to a similar conclusion on Sept. 1. 

Earlier this year, Hong Kong’s financial regulator, the Securities and Futures Commission (SFC), also approved the first spot Bitcoin and Ether ETFs on April 24.

Source : Cointelegraph - Nov 12, 2024