Nano Labs (NASDAQ:NA), a provider of Web 3.0 infrastructure, saw its stock price jump 200% after announcing a private placement of $500 million in convertible notes alongside plans to invest significantly in the cryptocurrency BNB.
The company, headquartered in China, entered into an agreement with multiple investors to issue convertible promissory notes that mature in 360 days and bear no interest on the principal. These notes can be converted into Class A ordinary shares at a starting conversion price of $20 per share, subject to adjustments as specified in the deal terms.
This funding move forms part of Nano Labs’ strategic growth plan. The firm will first conduct a comprehensive evaluation of BNB’s security and valuation before proceeding. Initially, Nano Labs aims to purchase $1 billion worth of BNB through convertible notes and private placement transactions.
Looking further ahead, the company has set a goal to eventually own between 5% and 10% of the total circulating supply of BNB, indicating a major commitment to the digital currency.
The agreement’s completion is contingent upon customary closing conditions, and the company cautions that the transaction may not be finalized in whole or at all.