Nano Labs, a leading Web 3.0 infrastructure provider in China, recently made a bold move in the crypto space. It has acquired 74,315 Binance Coin (BNB) tokens through an OTC transaction valued at approximately $50 million.
Nano Labs Bets Big on BNB
This marks the first step in the company’s strategic BNB accumulation plan. Its long-term goal is to hold 5% to 10% of BNB’s total circulating supply, and it plans to allocate up to $1 billion to BNB. To support this goal, it plans to raise up to $500 million through convertible notes and private placement.
With this purchase, Nano Labs’ reserves of major digital assets, including Bitcoin and BNB, now stand at around $160 million. It has also become the first U.S.-listed public company to adopt Binance Coin as a core treasury asset. This sets it apart from the typical corporate trend of holding Bitcoin or Ethereum.
Notably, Nano Labs’ $50 million BNB purchase appears to be more than just a treasury move, it’s a shift away from its struggling hardware business. In the second half of 2024, the company’s revenue dropped 39% to $2.2 million, with losses totaling $8.4 million. With deep cost-cutting measures and R&D spending down 62%, the pivot to crypto looks more like a survival strategy than a bold expansion.
BNB Gains Traction with Institutions
Apart from Nano Labs, a group of former hedge fund executives also announced plans to raise $100 million to buy BNB through a Nasdaq-listed shell company. This shows rising institutional interest in the token. The rise of BNB as a treasury asset comes as more companies adopt altcoin-focused treasury strategies, echoing MicroStrategy’s Bitcoin strategy.
BNB Hints at Breakout
Also, the rise in institutional interest has boosted BNB’s social dominance, which is now at a two-month high. If the momentum continues, its price could rally and break towards a new all-time high.
BNB token is currently trading at $659.20. It is nearing a breakout as it trades within a symmetrical triangle pattern. Its overall technical indicators also lean bullish. The price is holding above key averages, and there is a potential for further gains if buying pressure continues.
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FAQs
Nano Labs’ $50 million BNB purchase appears to be a strategic pivot from its struggling hardware business. In H2 2024, the company’s revenue dropped 39% to $2.2 million with $8.4 million in losses, suggesting the move into crypto is a survival strategy to offset declining traditional business performance.
No, Nano Labs is not alone. A group of former hedge fund executives also plans to raise $100 million to acquire BNB through a Nasdaq-listed shell company, indicating rising institutional interest in the token. This mirrors MicroStrategy’s successful Bitcoin treasury strategy.
BNB’s increased institutional interest has boosted its social dominance to a two-month high. Technically, BNB is currently trading at $659.20 and is nearing a breakout from a symmetrical triangle pattern. Its overall technical indicators lean bullish, holding above key averages, suggesting potential for further gains towards new all-time highs.
