Nano Labs, listed on Nasdaq, plans to acquire $1B in Binance Coin to build a BNB reserve, targeting 5-10% of its circulating supply.
Nano Labs, a Web3 infrastructure firm and Nasdaq-listed company, has become the most recent organization to implement a digital asset treasury strategy. For the initial phase of this initiative, the organization intends to establish a BNB treasury and acquire assets valued at up to $1 billion.
Nano Labs is Buying $1 Billion Coins for BNB Reserve
The company disclosed in a press release that it intends to acquire $1 billion in BNB through private placements and convertible notes during the initial phase. In the long term, Nano Labs will retain 5% to 10% of BNB’s total circulating supply.
This announcement was made just one day after it was reported that Hedge Fund executives intend to raise $100 million for a BNB treasury company that will be listed on the Nasdaq. Nano Labs is the second entity in rapid succession to plan to establish a treasury containing BNB tokens.
The company has initiated the development of this Binance Coin treasury by announcing a $500 million private placement of convertible notes. It has executed a purchase agreement under which it has consented to the issuance of convertible promissory notes and has secured the subscription of numerous investors.
The notes will mature 360 days after issuance, and no interest will be accrued on the outstanding principal amount. Meanwhile, the initial conversion price for ordinary shares is $20, although this figure is subject to change. According to the release, the infrastructure firm must repay the outstanding principal amount on the maturity date unless it has already been converted.
Nano Labs intends to raise a maximum of $500 million from this endeavor. In the interim, the organization declared that the agreement represents a significant milestone in its strategic expansion. The company will comprehensively evaluate the security and value of the Binance Coin as part of this BNB treasury initiative.
CZ Responds to Nano Labs’ Announcement
Changpeng “CZ” Zhao, Binance’s former CEO, responded to Nano Labs’ announcement of the BNB treasury strategy in an X post. He observed that the company will become a strategic reserve public company that exclusively uses BNB, contributing $500 million to the token’s ecosystem.
The company’s stock price “went through the roof” following the announcement, as the former CEO of the top crypto exchange also emphasized. The NA stock price has increased by more than 66% today, according to TradingView data. In the interim, the stock has experienced a year-to-date (YTD) increase of more than 100%.
In the interim, CZ stated that he and his affiliated entities did not participate in the $500 million private placement despite their continued support. He also responded to the Hedge Fund executives‘ decision to raise $100 million for a BNB treasury by stating that none of the BNB treasury plans have been driven by them thus far, but that they are incredibly supportive of each one.