Nasdaq-listed Nano Labs on Thursday said it has purchased 74,315 Binance Coin (BNB) tokens worth $50 million via OTC.
The purchase marks the official start of the $1 billion initial BNB treasury strategy, aiming to expand its treasury to hold 10% of the circulating supply.
BNB price maintains a higher trading volume above $1.50 billion in recent days as the activity rises on the BNB Chain.
Nano Labs Acquires $50 Million BNB
China’s chip development company Nano Labs announced today that it has purchased 74,315 BNB through over-the-counter (OTC) transactions at an average price of approximately $672.45. The total transaction amount was almost $50 million.
After the completion of this transaction, the company’s cumulative digital asset reserve (including Bitcoin and BNB) stands at approximately $160 million.
This marks the successful start of Nano Labs’ BNB treasury strategy. It also company’s commitment to continue increasing its BNB holdings in the future.
The company will continue to evaluate the security and long-term value of BNB. It plans on purchasing up to $1 billion worth of Binance Coin (BNB) in the initial stage through convertible notes and private placements. In the long run, Nano Labs aims to hold 5% to 10% of the total circulating supply of BNB.
Treasury Strategy with BTC Acquisitions
Nano Labs received 600 Bitcoin worth $63.6 million last week, as part of the initial investment in $500 million convertible notes agreement. The company secured a total Bitcoin holding of 1000 BTC.
From the $63.6 million in BTC, the company has purchased BNB worth nearly $50 million. The company earlier revealed that it will start shifting reserves to BNB.
Notably, convertible promissory notes in the aggregate principal amount of $500 million are payable in cash or an equivalent amount of cryptocurrencies. Nano Labs to buy more BNB and issue notes to the investors.
Meanwhile, Nano Labs (NA) stock price fell 8% to $8.05 on Thursday. The stock was up 111% in a month at the time of writing, as per Yahoo Finance.
BNB Price Eyes $900
BNB price saw a recent breakout from the tight range between $640-$650 after nearly a month. This primarily happened after the Maxwell hard fork on BNB Smart Chain, increasing transaction speeds and throughput.
The recent upgrade, Nano Labs’ treasury strategy, and $100 million liquidity program to support upside momentum in BNB price.
At the time of writing, BNB price was trading at $661, with a 24-hour low and high of $658.85 and $664.79, respectively. Furthermore, the trading volume has increased by 9% in the last 24 hours, indicating a slight decline in interest among traders.
In the daily timeframe, BNB price has rebounded above 50-SMA, 100-SMA, and 200-SMA at the time of writing. Whereas, the Relative Strength Index (RSI) slightly rose to 55.48, signaling a potential upside move in the coming days.
According to margin trader The Boss, Binance Coin (BNB) continued its progress within a clearly defined parallel channel on the weekly chart. The price has balanced between resistance and support levels within the ascending channel.
A breakout of the channel upward can trigger a rally to $900. This could coincide with the US Federal Reserve’s potential rate cuts in September this year.
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