image 1347550009 Nano Labs'crypto chip makes a big splash in New York IPO

Nano Labs’crypto chip makes a big splash in New York IPO

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1. The recent meltdown in cryptocurrency markets is dealing a blow to related businesses.
2. Nano Labs made its trading debut on the Nasdaq on Tuesday after selling about 1.8 million American depository shares (ADSs) for $11.50 each in an IPO that raised about $20 million.
3. The stock rose nearly 4.8% on its first day of trading, but then tumbled 27% on its second day, hinting at the kind of roller coaster ride the shares are likely to see in the months ahead due to high volatility in the industry where it operates.
4. Nano Labs was founded in 2019 by a former chairman and a director of Canaan Inc. (CAN), a maker of crypto mining machines.
5. Nano Labs only designs chips and outsources their manufacturing to third-party foundries.
6. Last year, Nano Labs’ sales increased more than 18-fold as it ramped up production.
7. But its annual revenue is still tiny, at just about the equivalent of $6 million.
8. Nano Labs is also eyeing its own pivot into other areas to reduce its crypto exposure. In this case, the company is turning to the metaverse.
9. The metaverse in its most basic definition is a mix of virtual and physical worlds where people interact with others through avatars.
10. The global market for metaverse-related technologies is expected to grow at a compound annual rate of more than 50% over the next eight years, reaching $1.6 trillion by 2030, according to Precedence Research.

image 1347550009 Nano Labs'crypto chip makes a big splash in New York IPO
Nano Labs'crypto chip makes a big splash in New York IPO 3

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