Nano Labs Begins BNB Accumulation with $50M Purchase

Chinese microchip manufacturer Nano Labs has officially started its ambitious plan to build a major treasury of BNB , the native token of Binance. On Thursday, the company confirmed it had acquired $50 million worth of BNB, marking the first step toward its goal of holding between 5% and 10% of BNB’s total circulating supply. Nano Labs reiterated its long-term target of spending up to $1 billion on BNB, with its latest purchase bringing its combined crypto holdings, including Bitcoin, to approximately $160 million. Founded in 2019 by Kong Jianping and Sun Qifeng following their tenure at hardware giant Canaan, Nano Labs went public in 2022 and specializes in high-performance computing chips and high-throughput computing solutions. While the company’s initial announcement to issue $500 million in convertible notes for its BNB treasury previously sent its stock soaring by over 106%, the latest purchase failed to generate similar enthusiasm. Nano Labs Aiming for 10% BNB Supply With BNB’s circulating supply at 145.8 million and a market capitalization of $93.4 billion, acquiring 10% at market rates would require around $926 million in additional purchases from Nano Labs. Binance’s ongoing token burns have steadily reduced BNB’s circulating supply, with Binance and its former CEO Changpeng “CZ” Zhao reportedly holding a combined 71% of the circulating supply, according to a June 2024 Forbes report. A BNB Chain spokesperson acknowledged the increased institutional interest in BNB, stating, “We welcome all organic adoption that supports BNB and the sustainable growth of our ecosystem.” Crypto Treasuries Face Investor Scrutiny Despite a broader trend of companies adding crypto to their treasuries , some industry figures remain skeptical about the long-term appeal. Anthony Scaramucci, founder of SkyBridge Capital, told Bloomberg that while he remains bullish on Bitcoin, investors may question whether it makes sense to back a company holding crypto instead of purchasing the asset directly. “The question is, if you’re giving somebody $10 and they’re putting $8 into Bitcoin, are they going to do well? Yes. But you might have been better off just putting $10 into Bitcoin,” Scaramucci said, emphasizing that investors must carefully evaluate the underlying costs tied to crypto treasury strategies. The post Nano Labs Begins BNB Accumulation with $50M Purchase appeared first on TheCoinrise.com .

Source: The Coin Rise