- Nano Labs made its first BNB buy of $50 million to begin its $1 billion crypto strategy.
- The company now holds $160 million in BNB and Bitcoin after shifting from hardware sales.
- It plans to own up to 10% of the BNB supply to expand its digital asset reserves.
Chinese microchip maker Nano Labs has launched a $1 billion plan to acquire up to 10% of BNB’s supply. The company recently acquired 74,315 BNB in an over-the-counter deal valued at $50 million, priced at approximately $672.45 per token. Nano Labs confirmed its goal to eventually own between 5% and 10% of BNB’s total circulating supply. The firm now holds approximately $160 million in digital assets, including Bitcoin, and plans to significantly expand this investment. This initiative follows a broader shift by the company to crypto reserves as its hardware business continues to face losses.
From Chipmaker to Crypto Holder
Founded in 2019 by Kong Jianping and Sun Qifeng, Nano Labs was formed after both exited the board of hardware firm Canaan. The company, now listed publicly, specializes in high-throughput and high-performance computing chips. It is headquartered in Hong Kong. After a 39% revenue drop in Q2 2024, the company reduced R&D spending by 62% to cut costs and preserve margins.
In response to falling hardware demand, Nano Labs first acquired 400 Bitcoin worth $40 million, marking its initial crypto pivot. The firm’s iPollo mining chip division suffered sharp declines, posting a $2.2 million revenue, down 39% year-on-year. The company reported $8.4 million in quarterly losses, though inventory write-offs helped improve gross margins and prompted a strategic pivot.
Why BNB and Not Bitcoin?
The company’s previous Bitcoin reserves centered on scarcity, but its BNB play appears focused on network utility. BNB powers one of the busiest smart contract platforms in crypto, enabling lower-cost decentralized applications. Despite Binance’s regulatory hurdles, Nano Labs considers the token undervalued and vital to its digital reserve plan.
The recent purchase is its first $50 million acquisition, forming the initial component of a larger project to acquire BNB at a cost of $1 billion. Nano Labs may impact the market perception of the asset, aiming to hold no more than 10% of the existing BNB supply in circulation. When successful, this offensive action will drive the utilities and the worth of BNB as a treasury reserve asset to be reconsidered by the institutions.
Notably, this approach diverges from typical corporate strategies that prioritize Bitcoin, such as Strategy’s model. Nano Labs is not alone. A group of former hedge fund executives also plans to raise $100 million to buy BNB. This push hints at a slow but widening trend among institutions considering altcoins with real-world use cases.
Related: Nano Labs Announces $500M in Convertible Notes for BNB Treasury
Is BNB the Next Corporate Reserve Frontier?
As corporate crypto strategies evolve, Nano Labs’ acquisition of BNB may signal a shift in how firms allocate their treasury assets. Previously, most companies followed Bitcoin due to its fixed supply and dominant status as digital gold. However, attention is now broadening to tokens with operational value in thriving ecosystems, such as Ethereum or BNB.
Recently, BitMine Immersion Technologies switched to Ethereum, providing a successful example of more companies embracing the diversification of their crypto treasuries. Likewise, the adoption of Bitcoin in treasury approaches was confirmed through the model presented by Strategy, opening the possibility for future analysis. The market activity and positioning of BNB offer an alternative attraction to other firms seeking utility over scarcity, such as Nano Labs.
According to industry experts, corporate ownership of crypto assets is expected to become even more diversified as more companies become interested in exposure to blockchain technology. This large target of the company, along with financing through convertible notes, indicates how much it takes the future of BNB. The radical move by Nano Labs could become a criterion for future altcoin reserve approaches.
