China’s Nano Labs Ltd has invested $5 million into CEA Industries Inc. to help the Nasdaq-listed company grow its Binance Coin (BNB) reserves. The announcement was made on July 30 and marks a key move in Nano Labs’ plan to build a large crypto treasury.
Nano Labs bought 495,050 shares of CEA at $10.10 each. Along with the shares, the company received the same number of warrants, allowing it to buy more shares at $15.15 each in the future. If all the warrants are used, Nano Labs could end up owning nearly one million shares of CEA.
CEA, known for its past work in the Canadian vape industry, is now shifting focus to the crypto world. The company plans to use most of the $500 million it hopes to raise through a PIPE (Private Investment in Public Equity) deal to buy BNB tokens.
According to the release, “Proceeds from this tranche are primarily designated for the acquisition of BNB, with the remainder allocated toward working capital, transaction fees, and general corporate purposes.”
Notably, Nano Labs is also building its own BNB reserves. The firm currently holds around 128,000 BNB tokens. This latest deal is part of its $1 billion goal to grow its crypto holdings, especially in major assets like BNB.
The partnership also gives Nano Labs a chance to benefit from CEA’s planned growth. CEA hopes to attract both institutional and retail investors by offering exposure to BNB through equity channels.
This move comes shortly after Nano Labs raised $500 million on June 24 by offering convertible promissory notes. By June 26, it had received 600 Bitcoin worth over $63 million from that deal. These funds are also going toward building the BNB treasury.
The agreement is still pending and must pass standard closing steps. Nano Labs and CEA are both listed on Nasdaq.
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