- Nano Labs buys $50M BNB, plans total $1B future stake.
- The company targets holding 10% of BNB’s entire circulating supply.
- More firms adding Solana, BNB to diversify crypto reserves beyond Bitcoin.
Chinese microchip company Nano Labs has taken a big step into the crypto world. This week, the company announced that it has purchased $50 million worth of BNB, which is the native token of the Binance ecosystem. This action will signal the beginning of a scheme by Nano Labs to maintain as much as 10% of the circulating supply of BNB.
Nano Labs to Expand BNB Reserves with Convertible Notes
Nano Labs said that it has a long-term strategic plan of investing as much as 1 billion dollars in BNB. It is interested in having a share of 5-10% of the full supply of circulating BNB. With this latest acquisition, the total amount of digital currency holdings of the company, including Bitcoin, has increased to near about $160 million. This is an indication that Nano Labs is keen on increasing its crypto assets.
Nano Labs was granted 600 Bitcoin with an approximate value of 63.6 million dollars last week. This was in connection with a convertible note of $500 million. These notes may be redeemed either in crypto or in cash. After acquiring Bitcoin, Nano Labs invested nearly 50 million dollars, intending to acquire the BNB. The firm has announced that in the future, it is going to continue converting additional reserves to BNB.
Nano Labs illuminated in its official statement that it will consider cautiously the security and the long-term value of BNB. The company has an ambition to purchase additional BNB by convertible notes and by individual placement. It is a very new plan as yet, but Nano Labs intends to eventually achieve the target of a billion dollars in Nano BNB.
Firms Add Crypto to Reserves Beyond Bitcoin
It is a trend reflecting a larger one in the crypto world. There is a surge in the number of firms that are beginning to hold digital currencies as a type of reserve. Most corporate treasuries have favored Bitcoin. Other tokens, colloquially known as altcoins, are, however, attracting more popularity. As an example, companies and institutions made significant purchases of Ethereum and Solana in recent weeks.
One clear example is DeFi Development Corp. Recent purchases have seen the company put a huge quantity of Solana on its balance sheet. It purchased SOL tokens in the amount of 17,760 at the price of 2.7 million dollars and intends to retain them in the long run. However, at present, BNB is playing a significant role in the reserves that Nano Labs makes.
This venture of Nano Labs is one of the largest ones of BNB till now. It indicates that corporations are seeking alternative methods of diversification of their crypto-assets. Build & Build Corporation has also recently declared to invest in BNB with a fund of 100 million dollars. This indicates that the BNB will gain popularity among business organizations that intend to leverage crypto as a strategic asset.
Chinese Kong Jianping and Sun Qifeng started the Nano Labs in 2019. Ever since, it has made a large name in the microchip business. The company is now getting into crypto deeper. Nano Labs places its hopes on being at the forefront of the new digital economy by purchasing BNB and storing Bitcoin.
Going forward, the firm will continue on its buying spree of crypto. In case it achieves its aim, Nano Labs would be among the biggest owners of BNB globally. This is only the start of the company with the latest purchase.
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