BNB Chain Gains Institutional Backing with Nano Labs’ $500M Convertible Notes Deal

Nano Labs, a leading Web3 company based in China, entered into a $500 million convertible notes purchase agreement, a strategic financial maneuver that aligns with its larger plan to establish a $1 billion BNB treasury. 

Announced on June 25, the deal will see several investors subscribe to convertible promissory notes issued by Nano Labs Ltd (Nasdaq: NA). These notes carry no interest and are convertible into Class A ordinary shares of the company over the next 360 days. If not converted, the company will repay the full principal amount at maturity.

Convertible Notes Structure Explained

The convertible notes in this agreement come with a few key terms:

• They mature 360 days after issuance
• No interest accrues on the outstanding principal
• They are convertible into Class A ordinary shares at a price of $20 per share
• The conversion price is subject to adjustments
• If not converted, the principal is repaid on maturity
• The notes are unsecured general obligations of the company

While the structure may sound familiar to seasoned investors, the scale and purpose—funding a BNB treasury—make this a unique offering in the current crypto market.

This issuance forms part of Nano Labs’ broader strategy to acquire up to $1 billion in BNB, both through convertible notes and private placements. The company also disclosed its intent to eventually hold 5% to 10% of BNB’s total circulating supply. Given BNB’s current market cap of $93 billion and circulating supply of 146 million tokens, that is an ambitious goal.

CZ Reacts as BNB Treasury Strategy Gains Traction

Former Binance CEO and co-founder Changpeng “CZ” Zhao took to X (formerly Twitter) to share the news. While he and his affiliated entities did not participate in this round, CZ made it clear that he supports the initiative. He noted that Nano Labs “becomes a $BNB-only strategic reserve public co,” and pointed out that the company’s stock price “went through the roof” following the announcement.

Nano Labs’ announcement comes just one day after reports surfaced about another BNB-focused treasury initiative. Former executives from Coral Capital Holdings reportedly plan to launch a public company called Build & Build Corporation, which will manage a $100 million BNB treasury. Together, these developments suggest growing institutional interest in BNB as a long-term digital asset reserve.

A Bet on BNB’s Role in Web3 Infrastructure

In a press release, Nano Labs explained that the agreement is not just a financial play but part of a multi-phase strategy to integrate BNB into its core operations. The company will conduct an in-depth evaluation of BNB’s security, utility, and role in powering decentralized applications.

As the first step, the company will use proceeds from the notes to begin accumulating BNB, with the goal of establishing one of the largest corporate treasuries in the ecosystem. Over time, this strategy could establish Nano Labs as a key Web3 infrastructure player anchored in the BNB ecosystem.

The notes issued under this agreement are unsecured, and the company has warned that the transaction is still subject to closing conditions. There is no guarantee that the full amount will be raised, or that the notes will be converted.

However, this move sets Nano Labs apart from typical Web3 firms and places it closer to entities like MicroStrategy, which famously built a balance sheet centered on Bitcoin.

The BNB treasury news follows its entry into the stablecoin sector. On June 23, the company revealed it had applied for licenses in Hong Kong to issue stablecoins pegged to the Hong Kong Dollar (HKD) and offshore Chinese Yuan (RMB).

In parallel, Nano Labs will begin developing a technical framework for stablecoin issuance, focusing on high-performance networks like Bitcoin and BNB. The firm said it aims to support the development of a robust stablecoin ecosystem while strengthening the broader Web3 landscape.