Nano Labs Ltd. has announced a $500 million convertible note agreement to finance a massive acquisition of Binance Coin (BNB).
The company, known for its high-throughput and high-performance computing chips, will issue $500 million in convertible promissory notes to a group of investors. The unsecured notes are subject to standard closing conditions. They mature in 360 days, carry zero interest, and are convertible into Class A ordinary shares at an initial price of $20 per share.
According to a recent press release, proceeds will kickstart their plan to acquire up to $1 billion worth of BNB. They will do this through convertible notes and private placements. The firm’s long-term goal: to hold between 5% and 10% of Binance Coin’s total circulating supply. Such a stake would make Nano Labs one of the largest non-Binance holders of BNB globally.
Furthermore, convertible notes, which are exchangeable for equity at a fixed price, offer investors a dual benefit. These are the potential for capital appreciation if Nano Labs’ stock rises and exposure to the upside of the BNB treasury strategy.
Institutions Shift To Binance Coin (BNB)
The statement from Nano Labs coincides with a surge in institutional interest in BNB. BNB’s increasing prominence as a blue-chip digital asset was in the spotlight a day earlier. As reported by BanklessTimes, a group of former executives from Coral Capital Holdings announced ambitions to raise $100 million for a comparable BNB acquisition.
The action is a part of Nano Labs’ larger plan to diversify its corporate treasury, which now consists of Bitcoin as its main reserve asset. This demonstrates its faith in the Binance ecosystem and the currency’s usefulness, stability, and growth potential, with a particular focus on BNB.
With a stake that is only matched by Binance, the company might soon emerge as a major force in the ecosystem. If its plan goes as planned, it could strengthen Nano Labs’ competitive advantage in the market for digital assets and act as a hedge against market fluctuations.
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