Chinese company Nano Labs Ltd (Nasdaq: NA) has announced a deal for purchasing $500 million in convertible notes aimed at creating a strategic reserve for Binance Coin ($BNB).
Deal Status and Conversion Terms
Nano Labs has entered a subscription agreement for unsecured convertible promissory notes with a zero interest rate and a maturity period of 360 days. Holders of the notes will be able to convert them into ordinary Class A shares of Nano Labs at an initial price of $20 per share. The conversion price may be adjusted according to the terms specified in the note.
The company noted that the deal is subject to standard closing conditions and does not guarantee that all closing procedures will be completed. Investors are cautioned against making investment decisions based solely on the press release.
$BNB Reserve and Purchasing Plans
Nano Labs plans to begin purchasing Binance Coin ($BNB) using funds raised through convertible notes and private placements. In the initial phase, the firm intends to spend up to $1 billion on purchasing $BNB. The long-term goal is to increase between 5% and 10% of BNB’s total circulating supply. Under this initiative, Nano Labs will conduct a comprehensive assessment of BNB's market dynamics and security system. The strategic reserve will serve as a value store and an operating asset.
Company History and Directions
Nano Labs is a Web 3.0 infrastructure developer focusing on high-performance computing chips. It offers alternatives to standard GPUs in its proprietary Cuckoo series chips and has held Bitcoin as a primary reserve asset. The company operates in three core verticals: HTC solutions, HPC chips, and digital asset strategies. The $BNB Strategic Reserve signifies Nano Labs' ongoing diversification into blockchain-based assets and the inclusion of holdings within its broader technology and venture portfolio.
Thus, Nano Labs' initiative to create a strategic reserve for $BNB illustrates its intention to deepen its presence in the digital asset space and develop new avenues within Web 3.0.
