This acquisition strategy involves a combination of convertible promissory notes and private placements, with plans to potentially acquire up to $1 billion worth of BNB.

Currently, BNB has a market capitalization of approximately $90.3 billion, making this initiative a notable step in institutional investment in public blockchain assets.

Changpeng 'CZ' Zhao, co-founder of Binance, has expressed support for this initiative, although he and his affiliates did not participate in this funding round.

Nano Labs' acquisition strategy sets a precedent for institutional activity in blockchain assets, potentially attracting more traditional capital into the digital asset space.

The convertible notes feature a flexible structure, allowing investors the option to convert to equity or redeem the principal based on market conditions.

These notes will mature in 360 days without accruing interest and can be converted into Class A ordinary shares of Nano Labs at an initial price of $20 per share.

If Nano Labs successfully acquires its target of 10% of BNB's circulating supply, it could significantly influence market liquidity and valuation.

This move follows earlier reports of institutional interest in BNB, including efforts by crypto hedge funds to raise $100 million for similar investments.

Following the announcement of this acquisition plan, Nano Labs' shares surged over 100%, reaching around $22, while BNB's price rose by approximately 2.7%.

Despite the excitement, Nano Labs has cautioned that there is no certainty that the transaction will close in full or at all, as the notes are classified as unsecured general obligations.

Chinese blockchain company Nano Labs has announced a significant $500 million convertible notes deal aimed at acquiring Binance's BNB tokens, with a goal to hold between 5% to 10% of BNB's circulating supply.

However, the closing of this agreement is contingent upon customary conditions, and investors are advised not to rely solely on the press release for assurance.