China-based fabless chip designer Nano Labs Ltd. has filed a Form F-1 with the U.S. Securities and Exchange Commission (SEC) to raise $50 million in an initial public offering (IPO). The company is founded by former Canaan’s co-chairman Jianping Kong and seeks to list on the Nasdaq stock exchange under the ticker symbol “NA.”
Mining Chip Firm Nano Labs Plans $50 Million IPO on Nasdaq
Mining chip maker Nano Labs filed a Form F-1 with the SEC on June 10 to list on the Nasdaq stock exchange as an American depositary share (ADS), representing Class A ordinary shares. Former Canaan board co-chairmen and directors Kong Jianping and Sun Qifeng serve as Nano Labs’ chairman and vice-chairman, respectively. The two Canaan executives exited the company as directors in 2020.
Investors will not be purchasing equity securities of subsidiaries with business operations in China, but instead will be purchasing equity securities of the Cayman Islands holding company Nano Labs Ltd.
According to the prospectus, the company aims to provide computing power to the metaverse computing network with their fabless logic-memory integrated circuits.
Nano Labs develops high throughput computing (HTC), high-performance computing chips, distributed computing and storage solutions, smart network interface cards, and vision computing chips.
Moreover, the Cuckoo near-memory HTC chips are one of the first available in the market with a maximum bandwidth of almost 2.27 Tbps. Also, the chips are one of the first movers of the ASIC-based Grin mining market.
The company’s listing at a time of decreased mining profit may not be beneficial for the investors. The miners are selling their holdings due to financial constraints and regulatory uncertainty. The mining difficulty is also rising continuously, further increasing problems for crypto miners.
Crypto Market Under Pressure Due to Rising Inflation
The crypto market is reeling under pressure due to rising inflation in the U.S. and around the world. The crypto market dropped significantly in response to the Fed’s May inflation report on Friday. The Bitcoin price has dropped below the $30k level again, with the current price trading at $29,290 and Ethereum has dropped to its March 2021 price of $1,669.