The public offering will be reportedly listed on the stock exchange dubbed Nasdaq.
On June 10, China-based chip designer Nano Labs filed with the US Securities and Exchange Commission (SEC) for an initial public offering (IPO) in the United States in order to raise up to $50M.
As stated in the official announcement, the funds will be raised on Nasdaq, the biggest stock exchange in the world, despite the current crypto market turmoil and various regulations imposed in the US and China, which resulted in a decline in Chinese sponsors' international funding.
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Moreover, this year, it was reported that only two initial public offerings (IPOs) were carried out in NY, which raised $49.5M, compared to 28 IPOs, which managed to raise $5.8B in 2021.
Nevertheless, Nano Labs is carrying on with its initiative and also planning to become a metaverse organization that will provide computing power for entertainment and gaming in the upcoming years. Chief executive and chairman Kong Jianping added:
“I am earnestly confident that the metaverse will open a new era for humankind. It is my intention that Nano Labs will be committed to developing the power of the metaverse and [be] among the key players to help the world explore it.”
In fact, Metaverse is an online environment that received much attention in the latest months. For instance, earlier in May, the Brazilian-based University of São Paulo (USP) stated that it would carry out research on the metaverse later this year. Likewise, the South Korean government has recently announced that it would invest over 223.7 billion won, valued at $177.1 million, to assist various metaverse-related projects.
Nano Labs, founded in 2019 and managed by co-founders Kong and Sun Qifen, mostly focuses on building high-throughput memory and computing chips that are utilized to mine various cryptocurrencies, including Bitcoin (BTC) and Ether (ETH). The organization also provides computing services that provide its clients with the ability to boost machine learning effectiveness.
Interestingly enough, Nano Labs is playing a dangerous game as it might be potentially delisted in the future. According to the Securities and Exchange Commission (SEC), mainland Chinese-based organizations might be taken off the markets in America by next year if a US audit agency isn’t able to examine Chinese accounts for three years in a row. Nano Labs has stated that this poses a serious threat to the organization as its auditing work is carried out by its accounting firm’s offices which are located in China.
Furthermore, until the People's Bank of China (PBoC) launched a new set of policies last year to combat crypto adoption in the nation, China was thought to have the largest crypto mining space in the world. Because of this, the hash rate, defined as “the computing power of a cryptocurrency miner to provide solutions based on a specific cryptographic hash,” dropped to zero.
However, according to Cambridge Centre for Alternative Finance (CCAF), China still represented one-fifth of the overall hash rate of Bitcoin (BTC) from October to January.
Last year, Nano Labs recorded net losses of 174.9M yuan, estimated at around $26M, whereas in 2020, the company managed to lose 37.7M yuan, roughly $5.7M.
