Mentioned:
A publicly traded company on the Nasdaq wants to come after the opportunity in Binance Coin. But, why?
What’s happening:
- Nano Labs (NASDAQ: NA) has entered into a new financing deal to raise $500M USD through convertible notes for the purpose of purchasing Binance Coin
By the numbers:
- The $500M USD of convertible notes pay 0% interest and can be converted into common shares of Nano Labs at $20.00 USD per share
- If the convertible notes are not converted into common shares within 360 days, Nano Labs must repay their investors the full $500M USD
Why it matters:
- This is the first time ever a publicly traded company in North America has raised a financing round for the sole purpose of accumulating Binance Coin to hold directly as an asset
Going deeper:
- Nano Labs primary business is manufacturing high throughput computing chips and high performance computing chips for mining digital assets as well as artificial intelligence workloads
- Binance Coin is one of the largest digital assets in the world by market capitalization and unlocks significant value for Binance users, including discounted trading fees on the Binance exchange and trading platform as well as early access to new token sales
- Nano Labs plans to acquire up to $1 billion worth of Binance Coin (BNB) through this deal and private placements, aiming to hold between 5% and 10% of BNB’s total supply.
The intrigue:
- Nano Labs also currently holds 400 Bitcoin directly as an asset
