Nano Labs To Buy $1 Billion Binance Coin For BNB Treasury

Nasdaq-listed company and Web3 infrastructure firm, Nano Labs, has become the latest company to adopt a digital asset treasury strategy. The company plans to establish a BNB treasury and purchase up to $1 billion worth of tokens for the first part of this plan.

Nano Labs to Acquire $1 Billion Coins for BNB Treasury

In a press release, the firm announced that in the initial phase, it plans to acquire $1 billion worth of BNB through convertible notes and private placements. Over the long term, Nano Labs aims to hold 5% to 10% of BNB’s total circulating supply.

This announcement comes just a day after ConGape reported that Hedge Fund executives also plan to raise $100 million for a BNB treasury company, which will trade on the Nasdaq. This makes Nano Labs the second entity in quick succession that plans to establish a treasury that will hold BNB tokens.

The company has already kicked off plans for this Binance Coin treasury with its announcement of a $500 million convertible notes private placement. It has entered into a purchase agreement in which it has agreed to issue, and several investors have agreed to subscribe for, convertible promissory notes.

The notes will mature 360 days following the issuance, with no interest accruing on the outstanding principal amount. Meanwhile, the initial conversion price is $20 per ordinary share, although this amount is subject to adjustment. The release also noted that unless previously converted, the infrastructure firm shall repay the outstanding principal amount on the maturity date.

Nano Labs aims to raise up to $500 million from this venture. Meanwhile, the firm stated that the agreement marks an important step in its strategic growth. As part of this BNB treasury initiative, the company will conduct a thorough assessment of the security and value of the Binance Coin.

CZ Reacts To Nano Labs Announcement

In an X post, Binance’s former CEO Changpeng “CZ” Zhao reacted to Nano Labs’ announcement of the BNB treasury strategy. He noted that the company becomes a BNB-only strategic reserve public company, bringing $500 million to the token’s ecosystem.

The former CEO of the top crypto exchange also highlighted the fact that the company’s stock price “went through the roof” following the announcement. TradingView data shows that the NA stock price is up over 66% today. Meanwhile, the stock is up over 100% year-to-date (YTD).

Meanwhile, CZ remarked that he and his affiliated entities did not participate in the $500 million private placement, although they remain extremely supportive. He had also reacted to the move from the Hedge Fund execs to raise $100 million for a BNB treasury, stating that none of the BNB treasury plans so far are driven by them, but that they are extremely supportive of every one of them.

The Binance Coin price is also up amid this announcement. CoinMarketCap data shows that the altcoin is up over 2% in the last 24 hours, with $90.63 billion traded during this period.