David Edwards
Chinese chipmaker Nano Labs has taken its first major step toward a bold accumulation strategy, purchasing $50 million in Binance Coin (BNB) as part of a long-term plan to amass between 5% and 10% of the asset’s circulating supply—an initiative that could total $1 billion at market prices.
$160M in Holdings Signals Ambition
The latest BNB purchase brings Nano Labs’ combined holdings in BNB and Bitcoin to approximately $160 million, underscoring the company’s commitment to building a crypto-centric treasury. The Hangzhou-based semiconductor firm, founded in 2019 by Kong Jianping and Sun Qifeng, went public in 2022 and specializes in high-throughput and high-performance computing chips.
Although Nano Labs previously enjoyed a 106% stock surge upon announcing its convertible note issuance to fund the BNB purchase, investor enthusiasm appears to have cooled. Its shares declined 4.7% during Thursday’s session and dropped another 2% after hours, settling at $8.21, according to Google Finance. Meanwhile, BNB remained flat, trading up a marginal 0.3% at $663.
The Path to 10%: A Capital-Intensive Pursuit
Data from CoinGecko reveals BNB has a circulating supply of approximately 145.9 million coins and a market capitalization of $93.4 billion. Acquiring 10% of the token’s supply at current prices would cost Nano Labs around $926 million, leaving a sizable portion of its intended capital deployment ahead.
Complicating the path forward is BNB’s deflationary tokenomics, driven by regular burns initiated by Binance to reduce total supply. While the token initially launched with 200 million coins, ongoing burns have significantly decreased availability. A June 2024 Forbes analysis reported that Binance and former CEO Changpeng Zhao collectively controlled 71% of the then-circulating 147 million BNB.
Despite this concentration, a BNB Chain spokesperson welcomed Nano Labs’ move, citing rising institutional interest in the ecosystem and applauding “organic adoption that supports sustainable growth.”
Market Skepticism Around Crypto Treasuries
Not all market observers are convinced of the merits behind corporate crypto treasuries. Anthony Scaramucci, founder of SkyBridge Capital, expressed caution in a recent Bloomberg interview, suggesting that institutional investors may question the value proposition of companies that tie up capital in volatile digital assets.
“The question is, if you’re giving somebody $10 and they’re putting $8 into Bitcoin, are they going to do well? Yes. But you might have been better off just putting $10 into Bitcoin,” Scaramucci said, adding that while he remains bullish on Bitcoin, treasury strategies must be scrutinized for underlying cost implications.
