Nano Labs, a Fabless Mining Chip Designer, Files for US Listing

Crypto prices plunged, and so did Nano Labs' rival stock Canaan. Yet Nano Labs hopes to attract the U.S. investor to its IPO.
Jun. 14, 2022 10:23
Nano Labs, a Fabless Mining Chip Designer, Files for US Listing

(CapitalWatch, June 14, New York) China's Nano Labs Ltd., led by the former co-chairman of rival mining chip designer Canaan Inc. (Nasdaq: CAN), has filed for an initial public offering on the Nasdaq.

Based in Hangzhou, Nano Labs designs integrated circuits for mining using a comprehensive flow processing unit (FPU) architecture that integrates the features of both high throughput computing (HTC) and high performance computing (HPC). Nano Labs develops several chip series and is now working on the third generation of the "Cuckoo" chip, expected to be completed next year.

In 2021, Nano Labs booked $6.2 million in revenue on a net loss of $27.4 million, according to the prospectus. For the four months through April 2022, Nano Labs reported significant revenue growth to $27.5 million, plus $130.7 million in pre-sale orders.

The company noted that the results of its operations will be affected by the prices of cryptocurrencies. Primarily, Nano Labs provides chip solutions for the mining of Bitcoin, Ethereum, Ethereum Classic, Grin, and Filecoin. The prices of these have declined significantly over the past few weeks, with Bitcoin plunging sharply since last Thursday, down 26% to under $23,000. Overall, Bitcoin is down 53% year-to-date.

Heading Nano Labs is Jianping Kong. From May 2018 to July 2020, Kong served as the co-chairman of U.S.-listed Chinese stock Canaan, a company specializing on integrated circuits and bitcoin mining. A former sales and marketing director of Canaan, Qifeng Sun, serves as Nano Labs' vice chairman. Several other top managers also served with Canaan, according to the prospectus.

Founded in 2019, Nano Labs operates a subsidiary in Singapore as part of its overseas expansion strategy. The company has also delved into the metaverse market and plans to set foot in the U.S. market.

In its filing with the U.S. SEC, Nano Labs said it plans to use the proceeds of its offering for the R&D of more advanced ASIC chips, smart-NICs, vision computing chips, and its metaverse computing network platform, "Ipolloverse." In addition, the company plans to set up its own manufacturing plant, as well as a headquarters in the United States for the iPollo brand.

The company hopes to become publicly traded on the Nasdaq Global Market under the ticker "NA."

Nano Labs has attracted AMTD, Maxim Group, and Tiger Brokers to underwrite the offering.

The stock in Canaan tumbled nearly 13% Monday amid a broad plunge of the markets and the crypto prices. Canaan completed its U.S. IPO worth $90 million in November 2019.