Shares of Nano Labs surged Tuesday after the Hong Kong-based chipmaker revealed plans to offer $500 million in convertible notes to fund a massive $1 billion purchase of Binance Coin (BNB).
The $500 million in notes, which are interest-free, will mature in 360 days. During that time, investors can convert them into Class A shares of Nano Labs at a conversion price of $20 per share — nearly twice Monday’s closing price.
Nano Labs said the move “marks an important step in the Company’s strategic growth.” It intends to use the proceeds from the offering, alongside private funding, to acquire BNB. The company also outlined its long-term goal “to hold 5% to 10% of BNB’s total circulating supply.”
BNB, the fifth-largest cryptocurrency in the world, has a market capitalization of around $90 billion, according to CoinMarketCap.
BNB saw gains Tuesday as Nasdaq-listed web3 infrastructure firm Nano Labs announced plans to build a BNB treasury through a convertible note offering, according to a company press release.
Nano Labs said it has entered a purchase agreement to raise $500 million via zero-coupon convertible notes maturing in 360 days. The company noted it will evaluate both the price and security of BNB before deploying the funds.
Proceeds from the offering could go toward acquiring up to $1 billion worth of BNB, with Nano Labs aiming to eventually hold as much as 10% of the token’s total circulating supply.
Binance founder Changpeng Zhao (CZ) acknowledged the development in a post on X, clarifying that neither he nor any of his entities are involved in Nano Labs’ fundraising efforts.
The announcement comes just a day after reports emerged that former executives of Coral Capital Holdings plan to launch a BNB-focused treasury. The publicly traded company, expected to be renamed Build & Build Corporation, aims to establish a $100 million BNB treasury.
Nano Labs (NA) stock doubled to about $22 on the news, reaching its highest level in two years. BNB rose approximately 2.7%.
The company said multiple investors have already committed to subscribing to the notes.
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