Nano Labs to Raise $500M to Establish BNB Treasury

Blockchain hardware firm Nano Labs has announced plans to raise $500 million through a convertible note purchase agreement with a group of investors. The company will use the funds to establish a substantial BNB (Binance Coin) treasury. The public firm aims to hold $1 billion worth of BNB in the end. This would give them control of around 5–10% of BNB’s total circulating supply, boosting their presence in the Web3 and blockchain space.

Nano Labs Explore BNB Accumulation

To raise the money, Nano Labs is offering convertible notes, which are a type of short-term loan. These notes will remain valid for 360 days (one year) from the date of issuance. During that time, investors can choose to convert the notes into company shares at a set price of $20 per share. This price can change if certain conditions are met as described in the agreement.

The notes do not earn interest, so investors only benefit if they convert into shares and the share value rises. If the investor chooses not to convert, the company will pay back the full loan amount at the end of the year. It’s also important to note that these notes are unsecured, meaning they’re not backed by company assets, just by a promise to pay.

Interestingly, Nano Labs’ stock, NA, saw a significant price surge shortly after the company disclosed its BNB accumulation goal. At the time of writing, the stock was selling for $24.31, representing a 123% increase over the past 24 hours.

More Crypto Treasury Adoption

Since 2020, the financial market has seen public companies embracing cryptocurrencies as treasury assets. Strategy (formerly MicroStrategy) popularized the concept by steadily acquiring bitcoin (BTC). Today, it owns nearly 600,000 BTC. Others that have committed themselves to Bitcoin accumulation include Metaplanet, GameStop, and Semler Scientific.

A similar initiative is underway at SOL Strategies, which is also raising $500 million through convertible notes. However, their focus is on Solana (SOL) rather than BTC or BNB. Companies are also exploring the establishment of an XRP treasury. Earlier this month, BitGo and VivoPower announced their intention to jointly adopt XRP. Another firm, Webus, disclosed plans to make a similar move.

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