Nano Labs acquires $50 million in Binance Coin as part of strategic plan

HONG KONG - Nano Labs Ltd (NASDAQ:NA), a Web 3.0 infrastructure provider based in China, announced Thursday it has purchased 74,315 Binance Coin (BNB) tokens through over-the-counter transactions at an average price of approximately $672.45 per token. The company, which has seen its stock surge over 113% in the past year according to InvestingPro data, continues to demonstrate aggressive moves in the cryptocurrency space despite recent market volatility.

The $50 million acquisition brings Nano Labs’ total reserves of mainstream digital currencies, including Bitcoin and BNB, to approximately $160 million, according to the company’s press release statement.

The purchase represents what the company describes as an initial step in its BNB strategic plan. Nano Labs indicated it aims to acquire up to $1 billion worth of BNB through convertible notes and private placements in its initial phase, with a long-term goal of holding between 5% and 10% of BNB’s total circulating supply.

"Following this transaction, the Company’s cumulative reserve of mainstream digital currencies, including Bitcoin and BNB, has around $160 million," the company stated in its announcement.

Nano Labs, which develops high throughput computing chips and high performance computing chips, has previously adopted Bitcoin as its primary reserve asset as part of its digital currency investment strategy.

The company’s core business includes its proprietary Cuckoo series chips, which it offers as alternative Application-Specific Integrated Circuit solutions to traditional GPUs.

In other recent news, Nano Labs Ltd announced a significant financial move by entering into a securities purchase agreement to raise approximately $50 million through a direct offering and concurrent private placement. The company plans to sell 5,952,381 Class A ordinary shares at $8.40 each and issue warrants for the same number of shares, exercisable at $10.00 per share. Additionally, Nano Labs has entered into an agreement to issue $500 million in convertible promissory notes to investors, with plans to convert these notes into Class A ordinary shares at $20 per share. This strategic initiative aims to bolster the company’s digital asset strategy, focusing on acquiring significant holdings of the cryptocurrency Binance Coin (BNB). Nano Labs has set an ambitious goal to eventually hold between 5% and 10% of BNB’s total circulating supply. The company has stated that the notes will be unsecured general obligations, and the completion of these agreements is subject to customary conditions. These developments underscore Nano Labs’ commitment to expanding its presence in the digital asset space.

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