BNB Network Company (Nasdaq: BNC), the treasury arm of CEA Industries Inc., announced the purchase of 200,000 BNB tokens valued at $160 million, making it the world's largest corporate holder of BNB.
Purchase of BNB Tokens
According to the announcement, this purchase is part of a $500 million private funding round led by 10X Capital and YZi Labs. BNC is focusing its treasury solely on BNB, which has become the company’s primary reserve asset.
Company's Leadership Structure
In support of this strategy, BNB Network Company has restructured its leadership. David Namdar, Co-Founder of Galaxy Digital, is now the CEO. Russell Read, former CIO of CalPERS, and Saad Naja, former director of Kraken, also joined the leadership team. Additionally, Hans Thomas and Alexander Monje from 10X Capital joined BNC's board.
Market Reaction to the News
Following the announcement, BNB's price jumped over 2.5% to $826 within two hours, trading at $822.30 at the time of writing. Analysts compare BNC's BNB strategy to MicroStrategy's well-known Bitcoin investments, dubbing BNC the 'BNB version of MicroStrategy.' BNC will continue to purchase BNB until the initial capital is exhausted and can issue warrants to raise up to $1.25 billion to buy more tokens.
Such measures by BNB Network Company could increase institutional interest in BNB, particularly in the U.S., where the token is currently underrepresented.
