A heavyweight news has emerged in the crypto circle — Chinese chip design company Nano Labs announced it will launch an investment plan of up to $1 billion, aiming to buy and hold Binance's BNB token long-term, with an eventual holding of 5% to 10% of its total circulation. In response to this positive news, the company's stock price surged over 100% at one point.
First round of financing $500 million, let’s buy BNB first.
Nano Labs stated that the company has reached an agreement with specific institutional investors to issue $500 million in unsecured convertible bonds, with a term of 360 days and an annual interest rate of 0, which can be converted into the company's Class A common stock listed on NASDAQ at any time, with an initial conversion price of $20 per share.
These funds will be exclusively used to execute its latest asset allocation strategy—incorporating BNB into the company's balance sheet as a medium to long-term reserve asset. This is the first time Nano Labs has attempted to treat crypto assets as part of core capital allocation, and it is seen by the market as a strong endorsement of BNB's prospects.
Ultimate goal: Control one-tenth of BNB's circulation?
Nano Labs' announcement mentioned that it will also gradually raise up to $1 billion through bond issuance and private placement to purchase BNB in stages. The goal is to gradually increase its holdings to 5% to 10% of the total circulating supply at reasonable price levels, potentially controlling about $9 billion worth of BNB in the market.
BNB becomes the core of the company's strategy, with risks still to be assessed.
BNB is a token issued by Binance Exchange, currently valued at approximately $94.1 billion, making it the fifth largest cryptocurrency in the world. At the same time, it is also a key asset in the BNB Chain ecosystem. Nano Labs believes it has medium to long-term value and is expected to provide the company with a more resilient reserve asset structure.
However, the company also emphasized that the current agreement has not been fully finalized and further comprehensive assessments of BNB's security, volatility, and asset value are needed. The purchase plan is expected to be formally executed only after the review is completed.
BNB's popularity is skyrocketing; is capital beginning to rush in?
It is worth noting that, in addition to Nano Labs, there are also reports of another capital team—a team composed of former hedge fund managers—planning to raise $100 million through a shell company on NASDAQ specifically to purchase BNB. Various signs indicate that BNB is beginning to transition from a single platform token to a 'capital allocation-grade asset.'
Summary: Is BNB moving toward becoming like Bitcoin?
This operation by Nano Labs can be viewed as one of the turning points for #BNB to move towards being an 'institutional investment asset.' A publicly listed company openly buying tokens on a large scale and incorporating them into its financial strategy is a key signal of the expanding influence of the Binance ecosystem.
Next, if Nano Labs' actions progress smoothly, BNB may welcome a new wave of valuation reassessment. The question is, who will be the next institution to bet on BNB?
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