Chinese company Nano Labs, a manufacturer of integrated circuits, has announced a significant financial move — the issuance of convertible bonds totaling $500 million. The funds raised will serve as the foundation for establishing a treasury in the cryptocurrency BNB, with the ultimate goal of increasing reserves to $1 billion.
This is reported by Business • Media
Strategy for Building Reserves in BNB
According to the company, agreements for the acquisition of securities have already been made with several investors, whose names are not disclosed. These are unsecured, zero-coupon bonds with a maturity date in June 2026. Bondholders will have the option to convert them into common Class A shares at a rate of $20 or into fiat currency.
Nano Labs plans to use the raised funds to form a treasury focused on crypto assets, specifically on the BNB coin. In the long term, the company intends to increase its reserves to $1 billion and subsequently concentrate between 5% and 10% of the circulating supply of BNB on its balance sheet.
Market Reaction and Comments
In light of the news, the stock price of Nano Labs, traded on the Nasdaq exchange, surged by over 170% during pre-market hours. It is worth noting that as of the end of June 23, the stock price was $10.89 — nearly half of the bond conversion price.
The situation was commented on by former Binance CEO Changpeng Zhao:
“Their stock price has skyrocketed. We (my affiliates) did not participate in this round, but we continue to provide tremendous support.”
It should be noted that Nano Labs is not the only example of using altcoins to build corporate reserves. For instance, Lion Group has also announced the creation of a treasury based on Hyperliquid, Solana, and Sui for up to $600 million.