Nano Labs raises up to $45mln through at-the-market offering.

• Nano Labs enters into an At The Market Offering Agreement with Maxim Group LLC • To sell up to $45,000,000 worth of Class A Ordinary Shares • Proceeds will be used for BNB and crypto asset reserve strategy, R&D of new products • Agreement allows for sales of shares from time to time in an at the market offering • Agreement is subject to certain terms and conditions outlined in the Prospectus Supplement and accompanying base prospectus.

Nano Labs Ltd (NASDAQ: NA), a leading Web 3.0 infrastructure and product solution provider, has entered into an At The Market Offering Agreement with Maxim Group LLC. This agreement allows Nano Labs to sell up to $45 million worth of Class A Ordinary Shares [1]. The proceeds from this offering will be used for various purposes, including building a BNB and crypto asset reserve strategy, research and development of new products, and general corporate purposes [1].

The At The Market (ATM) offering mechanism provides Nano Labs with significant flexibility to raise capital incrementally without the discount typically associated with traditional secondary offerings. This structure allows the company to issue shares at prevailing market rates whenever conditions are favorable, which could potentially introduce downward pressure on the stock price [1].

The timing of this capital raise warrants scrutiny. Companies typically pursue ATM offerings when they see significant growth opportunities requiring capital or face financial pressures necessitating liquidity. The structure of this offering suggests that management wants maximum flexibility to access capital markets without committing to a specific timeframe or price point, introducing uncertainty regarding the company's immediate capital needs [1].

Nano Labs has outlined three primary uses for the potential proceeds: building a BNB and crypto asset reserve strategy, funding R&D for new products, and supporting general corporate operations. The emphasis on creating crypto reserves suggests a strategic pivot or enhancement of their Web 3.0 infrastructure positioning [1].

For existing shareholders, this ATM offering presents a clear dilution risk. The company can issue shares at prevailing market rates whenever conditions are favorable for them, potentially putting downward pressure on the stock price. With the company's Nasdaq listing providing liquidity, this offering creates an overhang where significant new supply of shares could enter the market without the price protection mechanisms found in traditional offerings [1].

Nano Labs' strategic shift to a crypto-centric model, adopting Binance Coin (BNB) as its core reserve asset, has been accompanied by aggressive cost-cutting measures. Total operating expenses in H1 2025 fell by 53.5% year-over-year to $3.8 million, driven by an 89.1% reduction in R&D spending and a 39.6% drop in selling and marketing costs [2].

The company's decision to hold 128,000 BNB tokens as of June 30, 2025, underscores its belief in BNB's long-term appreciation potential and ecosystem maturity. However, BNB's volatility remains a double-edged sword, with a 30% drop in BNB's value potentially erasing nearly $2.05 million in gains, potentially widening Nano Labs' net loss [2].

References:
[1] https://www.stocktitan.net/news/NA/nano-labs-ltd-announces-entry-into-at-the-market-offering-dcakgwms3evp.html
[2] https://www.ainvest.com/news/nano-labs-strategic-shift-bnb-reserves-bold-bet-crypto-future-implications-long-term-2508/