Chinese company Nano Labs has announced the initiation of its plan to stockpile BNB by purchasing $50 million of the asset. The company's goal is to acquire up to 10% of the total circulating supply of BNB.
Purchase of $50 Million in BNB
Nano Labs confirmed its intentions last week, announcing its long-term goal to purchase up to $1 billion worth of BNB, which would represent 5% to 10% of the total supply. With the recent purchase, the company now holds approximately $160 million in BNB and Bitcoin.
Nano Labs' Stock Falls After News
Although Nano Labs' stock rose by over 106% after announcing plans to issue $500 million in convertible notes to create a BNB treasury, the news of the recent purchase did not impress investors. Following the BNB acquisition, the company’s stock price dropped more than 4.7% during regular trading and a further 2% after hours.
Long Road Ahead to 10% of Total Supply
According to CoinGecko data, BNB has a market cap of $93.4 billion, with a circulating supply of 145,887,575 coins. At current market prices, purchasing 10% of the supply would cost approximately $926 million. The initial supply of BNB was set at 200 million coins, but it is gradually decreasing due to the token burns initiated by Binance.
Thus, Nano Labs embarks on a long journey to accumulate a significant reserve of BNB. However, the drop in the company's stock price following the latest purchase raises questions about investor confidence in the strategy of investing in crypto-assets.
