Hong Kong-based chip maker Nano Labs has announced its intention to invest $50 million in Binance Coin (BNB), marking its first step towards accumulating a significant volume of the cryptocurrency.
Strategic Investment in BNB
The transaction to acquire 74,315 BNB units in an over-the-counter (OTC) market occurred at an average price of $672.45 each. Nano Labs aims to increase its BNB reserves to 10% of the total supply. To finance the remaining $950 million investments, the company plans to utilize convertible bonds.
Market Reaction and Corporate Sentiments
The concept of accumulating BNB as a 'treasury asset' is gaining traction in corporate circles. Analysts view the company's decision to tie up about a third of its cash reserves in a single cryptocurrency as risky.
Investor Reaction to the Announcement
Following the announcement of the purchase, Nano Labs’ stock fell by 4.7%, closing at $8.38 per share. Investors express concerns regarding the increased volatility in the company’s balance sheet due to substantial cryptocurrency holdings.
Nano Labs' investment in BNB represents a significant move into the cryptocurrency market and highlights the growing interest in altcoins among corporate investors.
