A Mining Chip Maker is Working on Listing on Nasdaq Amidst Market Downturn

Nano Labs Ltd, a Chinese fabless chip maker, has submitted a Form F-1 at the US SEC. The firm is looking to raise $50 million in an IPO. The firm was founded by the former Chairman of Canaan, Jianping Kong.

Nano Labs Ltd is hoping to get listed on the Nasdaq stock exchange with the symbol “NA.”

The $50 Million Nasdaq IPO Plan

Nano Labs submitted its Form F-1 at the Security and Exchange Commission on 10th June. The application is for listing on Nasdaq’s stock exchange to become an American Depositary Share. It represents the Class A regular shares.

The Chairman and Vice-Chair of Namo are Jianping Kong and Sun Qifeng respectively. Both served as directors on Canaan’s board. Both of them left the company in their capacities as directors two years ago.

American investors will be purchasing shares of Cayman Island Holdings of Nano Labs Ltd. Investors will not be buying shares of the company based in China.

According to the application, the company is working on making computing power available to the metaverse. The metaverse network will need it for its fabless integrated circuit.

Nano Labs work on the development of high throughput computing and computing chips. The company also develops computing storage, vision computer chips, as well as smart interface cards.

Importantly, the high throughput chips from Cuckoo are part of the first in the market. They have a bandwidth as high as nearly 2.27 Tbps. The said chips are equally one of the first shakers of the Grin mining market.

Coming at a time when there is less profit for miners, the listing might not yield much. Lots of miners are doing away with their holdings for financial difficulties. Regulatory instability is another factor driving miners far off. 

In addition, mining difficulty is increasing steadily. It further escalates the problems miners face.

The Market Pressure Persists Due to Inflation

The cryptocurrency market is groaning as a result of increasing inflation in the United States. Not just in the United States, but global inflation is exerting pressure on a broad scale. The cryptocurrency market lost heavily as the Fed published the inflation report for May.

The price of Bitcoin fell under the $30,000 mark once again as it now trades at $29,290. Ethereum on the other hand fell back to its price in March 2021 at $1,669.