Chinese Firm Nano Labs Begins BNB Accumulation with $50 Million Purchase
Nano Labs, a leading Chinese microchip manufacturer, has initiated its strategy to accumulate up to 10% of the total circulating supply of cryptocurrency-bhutan-happiness-philosophy/” title=”binance” class=”auto-link”>Binance Coin (BNB). The company’s first move involves a $50 million purchase of BNB, setting the stage for a long-term plan that could expand its holdings in BNB and Bitcoin (BTC) to $1 billion.
Market Response to Nano Labs’ Strategic Move
Following the announcement of its intention to establish a BNB treasury funded by $500 million in convertible notes, Nano Labs saw its stock price surge significantly. However, the market’s reaction to the actual $50 million BNB purchase was less enthusiastic, with the company’s stock price dropping over 4.7% during regular trading and an additional 2% in after-hours trading.
The Ambitious Goal of Securing 10% of BNB’s Supply
Given BNB’s current market capitalization of $93.4 billion and a circulating supply of 145,887,575 coins, Nano Labs faces the challenge of investing approximately $926 million to achieve its 10% target. This endeavor is further complicated by Binance‘s periodic token burns, which reduce the overall supply of BNB.
Expert Views on Crypto Treasuries
Anthony Scaramucci, the founder and managing partner of SkyBridge Capital, has voiced skepticism regarding the sustainability of companies maintaining cryptocurrencies in their treasuries. He posits that investors might find it more advantageous to acquire cryptocurrencies directly rather than through companies that hold them.
Nano Labs: A Brief Overview
Established in 2019 by Kong Jianping and Sun Qifeng, Nano Labs has carved a niche in producing advanced high-throughput and high-performance computing chips. After going public in 2022, the company has ventured into the cryptocurrency domain, with its recent BNB accumulation plan marking a significant step in this direction.
