Chinese language mining chip designer Nano Labs has utilized for an preliminary public providing (IPO) in the US to lift $50 million on Nasdaq amid sluggish market situations.

According to data obtained by the Renaissance Capital IPO monitoring device, the Huangzhou-based crypto mining chip maker has filed with the regulator, the U.S. Securities and Trade Fee (SEC), for its upcoming public providing on Nasdaq, the world’s second-larges inventory change.

The appliance for American depository shares is happening amid a slew of regulatory difficulties in China and the US, inflicting a scarcity of Chinese language issuers’ abroad fundraising. Solely two IPOs happened in 2022 in New York, elevating $49.5 million, in comparison with 28 IPOs, which raised $5.8 billion final 12 months.

Nano Labs, nevertheless, is urgent forward with its Nasdaq providing despite the fact that it has but to provide a viable product. The agency plans to remodel right into a metaverse enterprise, offering computing energy for gaming and leisure.

A metaverse is a brand new on-line atmosphere being developed on the blockchain. Customers might create avatars and personal digital property in these digital realms, typically known as “next-generation web” or Web3 purposes.

The 2 principal shareholders of Nano Labs are co-founders Kong and Solar Qifeng, with 32.8% and 22.3% stakes, respectively. Kong was beforehand the co-chairman and a director at rival Canaan, which turned the primary cryptocurrency-mining rig maker to listing within the U.S. in November 2019. In August 2020, he departed Canaan amid a company energy wrestle, in line with experiences from China then.

Nano Labs’ merchandise are used to mine cryptocurrencies resembling Bitcoin (BTC), Ether (ETH) and Filecoin (FIL). In 2020, the corporate’s earnings had been derived solely from China-based shoppers. To increase gross sales abroad, it established a subsidiary in Singapore final 12 months.

Associated: Celsius Community’s crypto mining subsidiary SEC submitting suggests plans for IPO

After Beijing cracked down on crypto actions in Could 2021, China, which was beforehand the world’s largest cryptocurrency mining location, witnessed some actions being pushed underground. In July final 12 months, the hash fee, a metric of the community’s computing energy for validating transactions and creating new digital belongings, briefly went to zero.

Even when the IPO is a hit, Nano Labs faces the hazard of being delisted. If a U.S. audit regulator fails to look at Chinese language accounts for 3 years, mainland Chinese language companies could also be delisted from American markets by 2023. Nano Labs claimed it will face this drawback on account of auditing work executed by its accounting agency’s places of work in China.