Chinese Mining Chip Firm Eyes Nasdaq IPO Amid Metaverse Bet

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Overview of Nano Labs and Its Nasdaq Ambitions

Nano Labs, a Shanghai-based chip design company and parent firm of Haowei Technology, has officially filed its draft IPO prospectus with U.S. regulators, aiming for a listing on the Nasdaq. Founded in July 2019, the company identifies itself as a distributed computing chip developer with a long-term vision to power the infrastructure of the metaverse. Its technological focus spans high-performance computing, artificial intelligence (AI), video encoding and decoding, and core network systems—all underpinned by high-bandwidth, specialized processor chips.

Despite its futuristic positioning, Nano Labs’ current revenue is heavily tied to cryptocurrency mining hardware. This duality—between present-day mining operations and future-oriented metaverse ambitions—forms the crux of its business narrative and investor appeal.

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Core Founders with Blockchain Roots

The company is led by Kong Jinping, a well-known figure in China’s blockchain ecosystem. Kong was an early investor in Canaan Creative—the world’s first publicly listed cryptocurrency mining equipment manufacturer, which went public on Nasdaq in November 2019. He later served as Canaan’s Co-Chairman alongside co-founder Sun Qifeng, who also previously held a board seat at the company.

Both Kong and Sun stepped down from Canaan’s board in August 2020 after completing their terms. However, their deep industry experience has been channeled into Nano Labs, where they now hold significant stakes: Kong owns 32.8%, while Sun holds 22.3% prior to the IPO.

Their track record lends credibility to Nano Labs’ technical capabilities, especially in semiconductor design for blockchain applications—a niche but high-stakes domain that demands advanced engineering and rapid iteration.

Financial Performance: Heavy Losses Despite Revenue Growth

While Nano Labs projects a bold vision for the metaverse, its financials reveal a company still in the early, loss-making phase of development.

According to its filing:

Notably, RMB 38.08 million of that 2021 revenue came from providing HTC (High-Throughput Computing) chip solutions for two mining devices: the Pineapple G1 and Pineapple G1 Mini. This indicates that over 96% of its income during that year was directly linked to cryptocurrency mining equipment.

However, strong revenue growth hasn’t translated into profitability:

With cumulative losses exceeding RMB 210 million over two years, the company remains far from self-sustaining. Its research and development expenses alone exceeded RMB 140 million during this period—highlighting a strategy prioritizing long-term technological development over short-term gains.

As of December 31, 2021, Nano Labs held RMB 234 million (~$33M USD) in cash and cash equivalents, bolstered by a nearly $20 million equity financing round completed in September 2022. The round was led by Yongwan Capital, with participation from Hashkey and several other investors.

Strategic Vision: From Mining Chips to Metaverse Infrastructure

Despite its reliance on mining hardware today, Nano Labs insists it is building toward a broader technological future. In a letter to investors released during its funding round, Kong Jinping declared that “2021 was the year of the metaverse,” framing the concept as a transformative shift in human interaction, economy, and digital space.

“We believe the metaverse is a new era of human civilization,” Kong wrote. “Nano Labs aims to be the Power of Metaverse—the engine that enables seamless exploration of virtual worlds.”

To realize this vision, the company is investing heavily in:

These areas are not speculative; they align closely with technical requirements identified by major tech firms exploring metaverse applications, including Meta, Microsoft, and NVIDIA.

Yet, as of now, there is limited public evidence of commercialized metaverse products or partnerships. Critics argue that without tangible deployments or revenue diversification beyond mining, the metaverse narrative risks being perceived as aspirational marketing rather than operational reality.

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FAQ: Understanding Nano Labs’ Business Model and Prospects

Q: Is Nano Labs currently profitable?
A: No. The company reported net losses of RMB 37.7 million in 2020 and RMB 175 million in 2021. It remains in a pre-profitability stage, relying on external financing to fund operations and R&D.

Q: What percentage of revenue comes from cryptocurrency mining?
A: Over 96% of Nano Labs’ 2021 revenue—approximately RMB 38 million—was derived from supplying chip solutions for mining machines like the Pineapple G1 series. This underscores its current dependence on the crypto mining market.

Q: How does Nano Labs plan to transition to the metaverse?
A: The company plans to leverage its expertise in high-throughput computing and distributed systems to develop infrastructure-level technologies for virtual environments, including AI processing units and optimized networking chips tailored for immersive experiences.

Q: Who are Nano Labs’ main competitors?
A: While direct competitors are limited due to its niche focus, potential rivals include GPU makers like NVIDIA and AMD, ASIC designers such as Bitmain, and emerging firms developing chips for AI and edge computing applications.

Q: Why go public in the U.S. despite regulatory scrutiny on Chinese firms?
A: A Nasdaq listing offers access to deeper capital pools, global visibility, and higher valuation multiples—critical for a capital-intensive sector like semiconductor development. Despite geopolitical risks, many Chinese tech firms continue targeting U.S. markets for strategic growth.

Q: Does Nano Labs have any confirmed metaverse clients or partners?
A: As of the latest disclosures, no specific metaverse partnerships or clients have been publicly announced. The company’s current commercial success remains rooted in mining technology.

Market Challenges and Opportunities Ahead

Nano Labs operates at the intersection of two volatile yet promising sectors: cryptocurrency infrastructure and next-generation computing platforms. On one hand, demand for efficient mining chips fluctuates with Bitcoin prices and regulatory shifts globally. On the other, investment in metaverse-enabling technologies continues to grow, driven by long-term bets on digital twins, virtual collaboration, and immersive entertainment.

For Nano Labs to succeed, it must execute a dual strategy:

  1. Sustain near-term cash flow through continued innovation in energy-efficient mining hardware.
  2. Deliver on long-term promises by launching verifiable metaverse-related products or securing strategic collaborations with platform developers.

The challenge lies in balancing investor expectations: satisfying those seeking quick returns from crypto-linked revenue while convincing forward-looking institutions that its metaverse roadmap is technically viable and commercially achievable.

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Conclusion: A High-Risk Bet on Technological Transformation

Nano Labs represents a classic case of a tech startup attempting to pivot from a proven but cyclical business (mining chips) toward a visionary but unproven market (metaverse infrastructure). Its leadership pedigree, technical expertise, and access to capital provide a solid foundation—but profitability remains distant.

As it moves toward a Nasdaq listing, transparency about its progress beyond mining will be crucial. Investors will watch closely not just for financial metrics, but for concrete milestones in AI integration, distributed computing deployment, or ecosystem partnerships that validate its “Power of Metaverse” claim.

In an era where digital infrastructure defines competitive advantage, Nano Labs may yet carve out a meaningful role—if it can bridge the gap between today’s mining machines and tomorrow’s virtual worlds.

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