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Nano Labs Ltd (Nasdaq: NA), a major Web 3.0 infrastructure and product solution provider based in China, has announced a significant financial initiative aimed at strengthening its crypto treasury.
The company revealed it has signed a convertible note subscription agreement with a group of investors to raise $500 million.
The convertible notes will be issued with a 360-day term and will accrue no interest before maturity, offering investors a chance to convert the notes into Nano Labs’ Class A ordinary shares at a predetermined price.
The financial maneuver highlights the company’s growing interest in aligning with prominent digital assets such as Binance Coin (BNB).
Details of the Convertible Notes Agreement
Under the terms of the agreement, Nano Labs will issue convertible promissory notes worth an aggregate of $500 million.
These notes, which mature after 360 days, offer holders the flexibility to convert their investment into Class A ordinary shares of the company at an initial conversion price of $20 per share.
The conversion price is adjustable under certain conditions, as outlined in the agreement.
Notably, the notes will be unsecured and treated as general obligations of Nano Labs, meaning they are not backed by specific collateral.
Investors should also be aware that the closing of the transaction is subject to standard conditions and is not guaranteed.
Also Read: GameStop upsizes convertible notes to $2.25B amid rising crypto interest
Strategic Use of Funds: Accumulating BNB
The core objective behind this fundraising strategy is to bolster Nano Labs’ position in the crypto market by increasing its holdings of Binance Coin (BNB).
According to the company, it plans to conduct a thorough evaluation of BNB’s security and intrinsic value before executing purchases.
In the initial stage of the plan, Nano Labs intends to acquire up to $1 billion worth of BNB through a mix of convertible note proceeds and private placements.
Over time, the company aims to control between 5% and 10% of BNB’s total circulating supply, an ambitious target that would firmly establish Nano Labs as a major institutional holder of the asset.
Potential Implications for Investors and Market Confidence
This move underscores Nano Labs’ evolving treasury strategy and its broader vision of digital asset integration.
By investing in BNB, Nano Labs signals confidence in the long-term viability and utility of Binance’s ecosystem.
For investors, the option to convert notes into equity provides potential upside linked to the company’s performance and its strategic positioning in the crypto and high-performance computing space.
However, the company also cautioned that the agreement is contingent on customary closing conditions, and there is no certainty that the transaction will proceed as planned.
As such, investors are advised not to place undue reliance on forward-looking statements.
Also Read: MicroStrategy Redeems $1.05 Billion Convertible Notes Amid Potential Tax Concerns On Bitcoin Gains