The bleak state of the cryptocurrency market does not prevent it from remaining dynamic. Nano Labs, a Chinese company specializing in the design of mining chips, presented its IPO (request for initial public offering) in the United States with the aim of raising 50 million on Nasdaq.
This mining chip manufacturing company is based in Huangzhou. Its two main shareholders are its two co-founders, Kong (32.8% stake) and Sun Qifeng (22.3% stake). Prior to joining Sun Qifeng to found Nano Labs, Kong was a director at Cannan, Nano Labs’ main rival today and the first mining rig maker to file an IPO in the United States. Facing some power struggles within the company, Kong left Canaan in August 2020 and founded Nano Labs with Sun Qifeng. In June 2021, Nano Labs established a subsidiary in Singapore. The mission of this subsidiary is to expand the company’s activities internationally and facilitate the conquest of foreign markets.
The information according to which Nano Labs would have submitted an IPO is reported by the IPO tracker Renaissance Capital, which specifies: ” Nano Labs, a chip designer with no factory in China, filed a petition with the SEC on Friday to raise up to $50 million in an IPO.[…] Nano Labs develops high-speed computing (HTC) chips, high-performance computing (HPC) chips, as well as distributed computing and storage solutions, intelligent network interface cards (NICs), vision computing, and distributed rendering. »
Nano Labs plans to launch itself into the metaverse and will provide computing power for games and entertainment.
Nano Labs presents its IPO in a particular context on two levels. First, the financial and cryptocurrency markets are bleak, which makes fundraising more or less difficult. So, the cryptocurrency ecosystem knows in both China and the United States a certain hostility towards mining, in particular PoW mining. The ban on cryptocurrency mining in China is well known to everyone. In the US too, this ban is starting to seep in, starting with New York State, which has just passed a law banning new PoW miners using non-renewable energy from entering for 2 years. Finally, this IPO request comes in a context of reduced fundraising abroad for Chinese companies. For example, during this first half of 2022, only two IPOs took place in 2022 in New York, with a funding of 49.5 million dollars, while last year there were 28 for a total funding of 5.8 billion dollars.
Despite this decrease in fundraising, it is expected that Nano Labs will be able to raise its 50 million dollars, an amount still higher than the two previous fundraisers this semester managed to obtain. But Nano Labs’ entry into the metaverse could make all the difference and ensure investor confidence.
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Luc José Adjinacou
Far from dampening my enthusiasm, an unsuccessful investment in a cryptocurrency in 2017 only increased my enthusiasm. Therefore, I decided to study and understand the blockchain and its many uses and transmit information related to this ecosystem with my pen.