Nano Labs Ltd (Nasdaq: NA), a Chinese Web 3.0 infrastructure company, announced a purchase agreement for $500 million in convertible notes. The transaction will help it to establish its $BNB Strategic Reserve, which will be a new era of its digital asset strategy.
Several investors have accepted subscriptions to unsecured convertible promissory notes issued by Nano Labs. These notes have a zero interest rate and a maturity period of 360 days. Holders can convert the notes to ordinary Class A shares of Nano Labs valued at an initial price of $20 per share. The conversion price can be adjusted according to the conditions provided in the note.
The deal is under standard closing conditions, and the company has also stressed that there is no assurance that all the closing will take place. Investors are cautioned against making an investment based purely on the press release.
$BNB Reserve to Start out with the $1Billion Purchase Plan
Nano Labs plans to start purchasing Binance Coin ($BNB) with the money received in convertible notes and private placements. The firm also intends to spend up to $1 billion on the purchase of $BNB during the first stage.
The long-term target is to increase between 5% and 10% of BNB’s total circulating supply. Under the initiative, Nano Labs will conduct a thorough assessment of BNB’s market dynamics and security system. The strategic reserve will act as a value store and an operating asset.
History and Company Direction
Nano Labs is a Web 3.0 infrastructure developer whose essence rests on high-appropriation and high-performance computing chips. It offers alternatives to standard GPUs in its proprietary Cuckoo series chips and it held Bitcoin as a primary reserve asset.
The company has three core verticals: HTC solutions, HPC chips and digital asset strategies. The $BNB Strategic Reserve denotes Nano Labs’ ongoing diversification into blockchain-based assets and the plan to include the holdings within its greater technological and venture portfolio.
