Nano Labs invests in CEA Industries as part of crypto reserve strategy

HONG KONG - Nano Labs Ltd (NASDAQ:NA), a Web 3.0 infrastructure provider based in China with a market capitalization of $120 million and impressive gross profit margins of 55%, announced Wednesday it has entered into a strategic equity investment agreement with CEA Industries Inc. (NASDAQ:VAPE). According to InvestingPro data, the company’s stock has shown significant volatility, returning 79% over the past year despite recent pullbacks.

Under the agreement, Nano Labs has subscribed for 495,050 shares of Class A common stock of CEA Industries at $10.10 per share. The investment includes an equal number of warrants with an exercise price of $15.15 per share, potentially allowing Nano Labs to hold up to 990,100 shares if fully exercised. This move comes as InvestingPro analysis shows Nano Labs is rapidly burning through cash, with negative free cash flow of $24 million in the last twelve months.

The investment is part of CEA Industries’ ongoing $500 million Private Investment in Public Equity (PIPE) financing plan. Proceeds from this transaction are primarily designated for the acquisition of BNB cryptocurrency, with remaining funds allocated toward working capital, transaction fees, and general corporate purposes.

This move aligns with Nano Labs’ strategic initiative to build cryptocurrency reserves across major public chain ecosystems. The company currently holds approximately 128,000 BNB tokens, according to the press release statement.

CEA Industries, previously focused on the Canadian nicotine vape industry, intends to adopt a BNB Treasury strategy following the closing of the PIPE, offering investors a gateway to participate in the BNB Chain ecosystem.

The closing of the agreement remains subject to customary conditions, and the company noted there is no guarantee the transaction will be completed in full or at all.

Nano Labs describes itself as a provider of high throughput computing and high performance computing chips, with an integrated platform covering multiple business verticals. For a comprehensive analysis of Nano Labs’ financial health, valuation metrics, and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 US-listed companies.

In other recent news, Nano Labs Ltd has significantly increased its BNB cryptocurrency holdings to 128,000 tokens, valued at over $108 million at current market prices. The company acquired an additional 8,000 BNB tokens at an average price of $801 per token, bringing the average acquisition cost to $713 per token. In a strategic move, Nano Labs has partnered with Orbiter Finance to develop a compliant stablecoin distribution and exchange service, expected to launch in Q4 2025. This service aims to support stablecoins pegged to USD, HKD, and offshore RMB.

Furthermore, the company has appointed Dr. Kailong Cai as CEO of its subsidiary, Nano bit HK Limited, to lead its strategic upgrade and global operations. Dr. Cai has a background in crypto finance, having previously worked as a partner at Jasper Crypto Fund. Additionally, Nano Labs has appointed finance veteran Can Yang as senior vice president of Nano bit HK Limited. Yang will oversee digital currency strategic reserves initiatives and support the company’s growth in the global crypto financial ecosystem.

These developments indicate Nano Labs’ continued expansion and strategic positioning within the cryptocurrency sector.

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