Nano Labs has formalized plans to issue $500 million in convertible notes, earmarking the proceeds to establish a $1 billion reserve fund dedicated to acquiring BNB.
The company aims to accumulate between 5% and 10% of BNB’s total circulating supply. This significant planned investment reflects Nano Labs’ expressed confidence in the long-term potential of the BNB blockchain.
Binance co-founder Changpeng Zhao (CZ) has previously emphasized BNB’s status as the native coin of a public blockchain, distinct from direct association with the Binance exchange.
Acquiring a stake of up to 10% in BNB’s circulating supply could potentially impact market liquidity dynamics. Nano Labs suggests the move is intended to bolster institutional confidence in BNB and encourage broader institutional participation within the cryptocurrency sector.
The convertible notes are structured to be exchangeable into Nano Labs’ Class A common stock at a conversion price of $20 per share. This mechanism is presented as a bridge between traditional finance and the crypto asset class, offering potential investors an equity conversion option to mitigate exposure to crypto volatility.