TLDR
- Nano Labs narrows losses with crypto gains, but hardware sales keep sliding.
- Stock sinks as Nano Labs shifts to BNB reserves amid falling mining revenues.
- Despite crypto boost, Nano Labs faces shrinking sales and rising borrowing costs.
- Nano Labs trims losses but weak demand for mining rigs rattles investors.
- Cash pile grows, yet Nano Labs’ hardware woes overshadow its crypto strategy.
Nano Labs Ltd (Nasdaq: NA) shares declined by 9.78%, closing at $4.06 after the company released its H1 2025 financials.
The company reported a net loss of $1.6 million and announced a significant shift toward cryptocurrency reserves. Despite narrowing losses, declining revenue and operational pressures pushed the stock sharply lower.
Revenue Slumps as Mining Sales Fall
Nano Labs posted net revenue of RMB8.3 million ($1.2 million), down from RMB24.7 million a year earlier. This drop stemmed from lower sales volumes of its iPollo V Series mining machines. Although costs also decreased, the company still recorded a gross loss of RMB10.7 million ($1.5 million).
Operating expenses dropped sharply to RMB27.3 million ($3.8 million) as the company cut selling, administrative, and research spending. Reductions in staff salaries and marketing commissions helped offset the impact of weak top-line results. However, the company still reported an operating loss of RMB38 million ($5.3 million).
Nano Labs also increased interest expenses, reaching RMB5.3 million ($0.7 million), compared to RMB2 million last year. This increase followed the end of interest capitalization in April 2024 and additional short-term borrowing, which added further pressure to the firm’s bottom line.
Shift to Crypto Strategy Boosts Short-Term Gains
Nano Labs recorded gains of RMB 48.6 million ($6.8 million) in the first half from revaluing its cryptocurrency holdings. The company accumulated over 128,000 BNB, which it considers its primary reserve asset. This shift helped reduce the company’s overall net loss despite operational weakness.
The company suffered an RMB18.5 million ($2.6 million) loss on convertible notes tied to bitcoin. These notes were issued in 2025 and were measured at fair value as of June 30. The fluctuation in bitcoin’s value impacted the financials despite no such notes in the previous period.
Nano Labs cut its net loss from RMB59.1 million to RMB11.8 million ($1.6 million). Loss per share dropped to RMB0.43 ($0.06), improving significantly from RMB8.46 in 2024. Still, the revenue decline overshadowed the narrowed losses and weighed on market sentiment.
Cash Reserves Surge, But Revenue Challenges Remain
As of June 30, 2025, the company held RMB363.4 million ($50.8 million) in cash and equivalents, up from RMB32.4 million last year. This rise strengthens its liquidity position as it builds its crypto asset strategy. However, recurring losses and falling hardware sales pose risks to sustainability.
While the crypto holdings provided short-term gains, the core business underperformed, reflecting weakened demand for mining hardware. The company also acknowledged the impact of inventory write-downs and unrecoverable taxes on cost structure.
Nano Labs aims to build a long-term strategic reserve based on BNB, signaling a shift from hardware to digital assets. However, with lower revenues and higher crypto exposure, the company’s path ahead will depend heavily on market cycles.
