Nano Labs Ltd, a prominent player in the Web 3.0 infrastructure market in China, has completed a $500 million convertible note placement, highlighting its intention to strengthen its position in the crypto industry.
Nano Labs' Strategy in the Crypto Space
The closure of the private placement is a next step in Nano Labs' strategy to enhance its status in the cryptocurrency space with a dedicated Binance Coin (BNB) treasury program. Several investors will subscribe to the convertible notes for a total principal amount of $500 million.
Terms of the Convertible Notes
The convertible notes shall be unsecured and represent general obligations of the company. Nano Labs is obliged to repay the face value on the maturity date unless converted sooner. The notes bear no interest and are set to expire 360 days after the date of issuance.
Company's Long-Term Plans with BNB
The overall strategy includes assessing the long-term security and value of BNB. Nano Labs plans to purchase up to $1 billion worth of BNB in the initial stage using similar convertible instruments and private distribution, aiming to eventually hold 5-10% of the total circulating supply of BNB.
This move signifies Nano Labs' growing interest in blockchain-native assets and its intention to create value by strategically managing its cryptocurrency treasury over the long term.
