Nano Labs Invests $50 Million in BNB, Shifts Focus from Struggling Hardware Business

Nano Labs, a prominent Web 3.0 infrastructure provider, has made a significant investment in the cryptocurrency space by acquiring 74,315 Binance Coin (BNB) tokens through an over-the-counter (OTC) transaction valued at approximately $50 million. This purchase is the first step in the company's strategic plan to accumulate BNB, with a long-term goal of holding between 5% and 10% of BNB’s total circulating supply. To achieve this, Nano Labs plans to allocate up to $1 billion to BNB and raise up to $500 million through convertible notes and private placement.

With this acquisition, Nano Labs' reserves of major digital assets, including Bitcoin and BNB, now stand at around $160 million. This move makes Nano Labs the first U.S.-listed public company to adopt Binance Coin as a core treasury asset, setting it apart from the typical corporate trend of holding Bitcoin or Ethereum. The company's decision to invest in BNB is not just a treasury move but also a strategic 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. Deep cost-cutting measures and a 62% reduction in R&D spending indicate that the pivot to crypto is more of a survival strategy than a bold expansion.

Nano Labs' investment in BNB is part of a broader trend where companies are increasingly looking to diversify their treasury holdings with cryptocurrencies. A group of former hedge fund executives also announced plans to raise $100 million to buy BNB through a Nasdaq-listed shell company, further highlighting the rising institutional interest in the token. This trend echoes MicroStrategy’s Bitcoin strategy, where companies are adopting altcoin-focused treasury strategies. The rise of BNB as a treasury asset comes as more companies recognize the potential of altcoins in their financial strategies.

The investment in BNB is also a strategic move to bolster Nano Labs' Web 3.0 strategy. The company, which went public in 2022, has been expanding its web3 infrastructure profile. Despite the stock market's initial reaction, with Nano Labs' share price dipping over 5% following the announcement, investors had previously sent its stock soaring nearly 200% after the initial BNB plan was revealed. The company's market cap now sits around $191 million. Nano Labs' commitment to BNB underscores its belief in the long-term value and security of the cryptocurrency, positioning itself as a unique player in the public company landscape.