NANO LABS Expands into Stablecoins and Convertible Notes

Introduction

NANO LABS LTD (Nasdaq: NA) is a fabless integrated circuit design company and Web 3.0 infrastructure provider headquartered in Hangzhou, China, with additional offices in Hong Kong and Singapore. The company conducted its initial public offering on July 12, 2022, with American Depositary Shares (ADSs) priced at US $11.50 per share. NANO LABS focuses on developing high throughput computing (HTC) and high performance computing (HPC) chips, including its Cuckoo series of near-memory HTC products.

Corporate Structure and Workforce

Operating through subsidiaries in mainland China and Hong Kong, NANO LABS previously had a presence in the U.K., which was dissolved on June 17, 2025. The company employs between 201 and 500 staff across engineering, R&D, manufacturing, and corporate functions. NANO LABS maintains a Cayman Islands holding structure for its ordinary shares and American Depositary Shares (ADSs), which are listed on the Nasdaq Global Market.

Recent Developments and News

• Bitcoin Reserve Asset (November 18, 2024): NANO LABS announced its intention to allocate a portion of excess liquidity into Bitcoin as a long-term strategic reserve asset.
• Stablecoin Licensing Plans (June 23, 2025): The company disclosed its plans to apply for licenses to issue Hong Kong dollar and offshore renminbi stablecoins.
• Convertible Notes Private Placement (June 24, 2025): NANO LABS entered into a purchase agreement to issue US $500 million of convertible promissory notes, maturing in 360 days and convertible at US $20 per Class A ordinary share. Proceeds will support the company’s strategy regarding BNB and potential token acquisitions.
• SEC Prospectus Supplement (Form 424B3, June 24, 2025): A prospectus update noted that up to 652,174 Class A shares may be sold upon warrant exercise. The closing price on June 20, 2025, was US $12.17 per share. The filing highlighted risks including market price fluctuations and regulatory challenges in China.

Financial and Strategic Analysis

As of June 24, 2025, NANO LABS’s ADSs closed at US $28.79, reflecting an increase of 164.37% over the prior period, with a volume of 3,021,922 shares. This rise is associated with the company's announcements regarding its digital-asset strategy and stablecoin initiatives. The US $500 million convertible notes are zero-interest notes that can be converted within one year at a premium to the current market price, subject to customary closing conditions. If fully converted, the company would issue up to 25 million new shares.

Key risks detailed in SEC filings include:

• Dependence on market price movements for warrant exercise.
• Potential risk of delisting under the Holding Foreign Companies Accountable Act if PCAOB inspections remain restricted.
• Regulatory oversight in China pertaining to cryptocurrency and data security operations.

Market Position and Industry Context

NANO LABS operates in the high-performance semiconductor market, focusing on data center and cloud computing applications with its HTC and HPC chip portfolios. The Cuckoo series of chips offers a bandwidth of up to 2.27 Tbps, integrating ASIC and GPU functionality for distributed rendering and specialized blockchain mining tasks. The company's planned expansion into stablecoins and token holdings indicates a strategy to combine financial services with its core competencies in chip design.

tl;dr

On June 23, 2025, NANO LABS announced plans to apply for licenses for Hong Kong dollar and offshore renminbi stablecoins. The following day, it secured a US $500 million convertible note agreement at US $20 per share to support its treasury strategy related to BNB. Its ADS price closed at US $28.79 on June 24, 2025 (up 164.37%). Investors should consider the potential dilution from convertible notes and warrant exercises in the context of the company’s move into digital asset services.