Nano Labs announced a $500 million convertible bond plan for BNB reserve strategy.

Author: BLOCKHEAD

Compiled by: Jessica

The stock price of this Web 3.0 infrastructure provider soared from $10.89 to $29.18, ultimately closing at $14.85. The company plans to acquire 10% of the circulating supply of BNB.

Nano Labs Ltd (Nasdaq: NA) saw its stock price soar 168% on Tuesday after the company announced the issuance of $500 million in convertible bonds to fund a large-scale acquisition of BNB.

Its stock price surged from a closing price of $10.89 on Monday to a high of $29.18, eventually closing at $14.85. In after-hours trading, it further dropped to $13.55.

According to the statement, this Hong Kong-based Web 3.0 company plans to acquire $1 billion worth of BNB through convertible bonds and private placements, with a long-term goal of holding 5% to 10% of the total circulating supply of the cryptocurrency.

The first batch of $500 million convertible bonds has a term of 360 days, zero interest, and a conversion price of $20 per share—an 84% premium over Monday's closing price.

This convertible bond is an unsecured bond and must meet the standard delivery conditions. Nano Labs reminds that "there is no guarantee of full or partial completion of delivery."

Despite the significant rise in stock prices, the conversion price of $20 still has a premium of 34% compared to Tuesday's closing price, reflecting the market's high expectations for its growth potential.

The sharp volatility reflects investors' speculative sentiment towards cryptocurrency reserve strategies, similar to the phenomenon of companies accumulating Bitcoin in previous market cycles. The rapid decline after intraday highs indicates that investors chose to take profits after weighing the potential returns of holding BNB against the execution risks.

Nano Labs primarily provides Web 3.0 infrastructure services for the Chinese market. The BNB reserve strategy marks a significant strategic shift towards the cryptocurrency asset management sector beyond its core business.