tl;dr
Nano Labs, a publicly traded blockchain infrastructure provider in China, plans to purchase $1 billion worth of BNB cryptocurrency, aiming to hold 5% to 10% of BNB’s total circulating supply valued between $4.7 billion and $9.4 billion. This announcement caused Nano’s stock to surge nearly threefold...
Nano Labs, a blockchain infrastructure provider in China, announced plans to invest up to $9.4 billion in BNB cryptocurrency, sparking a significant surge in its stock price. The company intends to acquire between 5% and 10% of BNB’s total circulating supply, valued between $4.7 billion and $9.4 billion, with an initial $1 billion purchase. This ambitious move caused Nano’s stock to nearly triple in value at market open before closing up 64.8% for the day.
The first phase of Nano's investment involves a $500 million purchase funded through convertible promissory notes, convertible into Nano stock after 360 days at an initial conversion price of $20 per share. This innovative financing strategy reflects growing corporate interest beyond Bitcoin into other cryptocurrencies such as BNB, Solana, XRP, and Ethereum.
BNB, the native token of Binance — the world's largest centralized crypto exchange — is the fifth-largest cryptocurrency by market capitalization, currently valued at $93.9 billion. Nano Labs' announcement has also inspired crypto hedge fund executives to plan raising $100 million for acquiring BNB, signaling increased institutional appetite for the token.
Binance founder Changpeng Zhao, who resigned in 2023 following criminal charges, praised the positive impact of Nano Labs’ BNB treasury move on the stock price, emphasizing its remarkable market reaction. His endorsement, though tempered with a cautious “not financial advice,” highlights BNB’s rising prominence as a favored cryptocurrency in corporate treasuries, potentially rivaling Bitcoin and Ethereum as mainstream investment vehicles.
This strategic pivot toward diverse crypto assets marks a significant trend as publicly traded companies explore new opportunities to enhance shareholder value, while navigating concerns around the volatility and risks associated with large-scale cryptocurrency holdings. Nano Labs’ bold commitment could reshape how corporations approach crypto investment, suggesting that BNB might become a new favorite in corporate balance sheets and investor portfolios alike.