Nano Labs, a provider of blockchain infrastructure services, announced a $500 million convertible notes agreement Tuesday to acquire Binance’s BNB token, aiming to bolster its BNB token treasury.
The arrangement intends to acquire up to $1 billion worth of the Binance’s BNB cryptocurrency via convertible promissory notes and private placements. The company additionally plans to evaluate the security and value proposition of BNB.
Nano Labs stated its objective is to amass between 5% and 10% of BNB’s available supply over the long term through its treasury initiative.
The convertible promissory notes matured after 360 days with no interest accrual. During the term, the notes can be converted into Nano Labs Class A ordinary shares. The initial offering price per share was $20, with potential adjustments. If conversions do not occur, principal repayment is due at maturity.
The debt instruments are unsecured. The company noted the deal’s potential is conditional, carrying no assurance of full execution.
Binance co-founder Changpeng “CZ” Zhao shared the news on X, confirming that associated entities did not participate financially. “Still, he emphasized widespread support for the initiative.
In the wake of the announcement, Nano Labs stock surged by more than 106% on the trading day, reaching $22.50 from a prior close at approximately $10.90.
This development highlights a growing institutional interest in BNB, following recent reports indicating crypto hedge funds seeking investments in the digital asset. Concurrently, asset manager VanEck has applied to U.S. regulators for approval of a regulated market product holding BNB.
