TLDR
Nano Labs raises $500M via convertible notes to acquire $1B in BNB, aiming for 5%-10% of total supply.
Nano Labs’ stock jumps 106% following news of $1B BNB acquisition plan, reaching $22.50 per share.
Nano Labs plans long-term BNB holding, contributing to the growing trend of corporate crypto treasuries.
Binance Coin (BNB) sees growing institutional interest as Nano Labs joins the wave of crypto treasuries.
Nano Labs, a Chinese blockchain infrastructure firm, has announced plans to acquire $1 billion worth of Binance Coin to add to its corporate treasury. The company intends to raise $500 million through the issuance of convertible notes, with the goal of purchasing up to 10% of the circulating supply of Binance’s native token. This strategic move aims to enhance Nano Labs’ financial position and diversify its holdings in cryptocurrency assets.
Details of the Convertible Notes Offering to Buy BNB
Nano Labs will issue $500 million in convertible notes to fund its BNB acquisition. These notes are unsecured and come with no interest. Investors who purchase these notes will have the option to convert them into Class A shares of Nano Labs at a price of $20 per share.
The conversion will occur within 360 days from the issuance date. If the notes are not converted by the maturity date, Nano Labs will repay the principal amount in full.
The company emphasized that this funding will be used to support the acquisition of BNB, with an initial goal of acquiring up to $1 billion worth of Binance Coin. The purchase will be made through a combination of convertible promissory notes and private placements, allowing Nano Labs to secure a significant portion of BNB tokens.
Nano Labs’ Long-Term Strategy for BNB
Nano Labs has expressed its intention to hold 5% to 10% of the total circulating supply of BNB in the long term. With BNB’s current market cap of approximately $93 billion, this acquisition would give the company a substantial stake in one of the world’s largest cryptocurrencies.
Nano Labs’ move to acquire BNB follows the trend of other institutional investors who have been diversifying their holdings with digital assets, including Bitcoin and Ethereum.
The company’s long-term plan is to position itself as a major holder of BNB, contributing to its overall strategy of strengthening its financial portfolio. Nano Labs noted that this acquisition could provide potential benefits as the use of BNB expands across Binance’s ecosystem, including its exchange and BNB Chain.
Nano Labs’ Stock Response and Market Reaction
The announcement of the convertible notes offering and the company’s plan to acquire BNB caused a significant surge in Nano Labs’ stock price. Shares of Nano Labs saw an increase of over 106% following the news, reaching $22.50 per share, up from $10.90 on the previous trading day. This surge reflects investor optimism about the company’s growing position in the cryptocurrency space.
Changpeng “CZ” Zhao, co-founder and former CEO of Binance, also commented on the development. He shared the announcement on social media, noting that Nano Labs’ stock price had risen substantially.
Although CZ and entities affiliated with him did not participate in the funding round, he expressed strong support for Nano Labs’ plans to expand its BNB holdings.
Growing Trend of Corporate Cryptocurrency Treasuries
Nano Labs is not alone in adopting cryptocurrency for corporate treasury management. The trend of companies holding cryptocurrencies such as Bitcoin, Ethereum, and now BNB in their treasuries has become more prevalent.
Recently, several other firms have made similar moves, including a crypto hedge fund that sought to raise $100 million to invest in Binance coin.
Moreover, financial institutions like VanEck have filed for permission to list exchange-traded funds (ETFs) that hold BNB, further indicating growing institutional interest in the token. As more companies look to diversify their financial assets, the role of cryptocurrency in corporate treasuries is likely to continue expanding.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
