Blockchain infrastructure company Nano Labs has announced a $500 million convertible bond purchase agreement to fund its BNB token treasury.
In a statement on Tuesday, the company indicated plans to acquire up to $1 billion worth of BNB tokens through a combination of convertible notes and private placements. As part of this plan, Nano Labs will also assess the security and value of BNB.
"In the long term, Nano Labs aims to hold 5% to 10% of the total circulating supply of BNB," the company stated.
These bonds will mature 360 days after issuance and will not accrue interest during this period. During this time, the bonds can be converted in whole or in part into Class A common stock of Nano Labs.
The initial conversion price is set at $20 per share of common stock, subject to adjustments. If the bonds are not converted within the specified time, the company expects to repay the outstanding principal amount on the maturity date.
Nano Labs noted that these bonds are unsecured and warned that "there is no guarantee that the transaction can be completed in whole or in part."
Binance co-founder and former CEO Changpeng Zhao (CZ) shared Nano Labs' announcement in a post on X. He further emphasized that the company's stock price "soared" after announcing the BNB reserve plan.
CZ also highlighted that he and entities associated with him "did not participate in this round of financing." However, he stated that they "remain extremely supportive."
Nano Labs' stock price rose over 106% during the trading day. It is currently trading at $22.50, up from the previous trading day's closing price of $10.90.
This is not the first time BNB has attracted the attention of institutional investors. Earlier this month, it was reported that executives from cryptocurrency hedge funds were seeking to raise $100 million to invest in BNB.
However, the products offered to investors by the company may soon face some competition in regulated markets, as asset management firm VanEck has applied to U.S. regulators for permission to list a spot exchange-traded fund (ETF) holding BNB.
Related:
Original: “Nano Labs Issues $500 Million Convertible Notes to Create BNB Treasury”
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