A Chinese Company Wants To Build A Cash Reserve Of 1 Billion Dollars In BNB!
The Chinese chip manufacturer Nano Labs shakes the crypto market with a spectacular announcement: buying up to 10% of the circulating BNB. This represents nearly 1 billion dollars. An ambitious strategy that raises as many questions as it fascinates!
In brief
- Nano Labs wants to buy up to 10% of the circulating BNB for 1 billion dollars.
- Markets doubt this crypto strategy since the stock dropped despite the 50 million investment.
A colossal crypto bet: 10% of global BNB in the sights
Nano Labs has just made a new purchase of 50 million dollars in BNB. Its primary goal: to build a company treasury completely focused on crypto. The company now holds 160 million dollars in digital assets (BNB and Bitcoin). According to its press release, it aims to acquire between 5% and 10% of the circulating supply of Binance’s native token.
However, the market remains skeptical. Indeed, the initial announcement of the plan had caused the stock to jump by +106%. But it then fell by 6.7% after the last purchase. The crypto market itself remained unmoved. Proof: BNB only rose by 0.3%.
Indeed, buying 10% of BNB would require more than 926 million dollars at the current price. Yet, 71% of the supply is still held by Binance and its former CEO CZ. This makes Nano Labs’ goal almost unrealistic.
A criticized crypto strategy: Scaramucci sounds the alert
Among crypto experts, Nano Labs’ strategy is not universally approved. Anthony Scaramucci, founder of SkyBridge Capital, for example, doubts the long-term viability of crypto treasuries. According to him, it would be better to buy the token directly yourself if a company invests your 10 dollars in BNB.
Even though he says he is bullish on Bitcoin, he urges cryptocurrency investors to look at the hidden costs associated with this type of structure. A recurring criticism for these companies whose valuation depends more on their tokens than on their actual business!
The crypto bet of Nano Labs therefore intrigues as much as it worries. Is it a strategic turning point or a risky hype? In any case, the crypto market is watching and waiting.
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.