Nasdaq-listed Nano Labs has entered a $500 million convertible note agreement to start purchasing Binance’s BNB coin. The company will use the funds raised through the convertible notes to acquire $1 billion worth of BNB. Nano Labs intends to acquire around 5-10% of the total supply as a part of its new treasury strategy.

Binance Coin To Rally?

The announcement is definitely bullish for BNB investors. The asset has rallied 3.4% in the last 24 hours and 12.1% since June 2024. Despite the rebound, BNB is down 2.5% in the daily charts, 3.3% in the 14-day charts, and 3.5% over the previous month.

Binance coin’s latest rally is likely due to a market-wide turnaround. Bitcoin (BTC) has reclaimed the $105,000 mark after recently falling below $99,000. The market-wide dip was most probably due to increased volatility following the escalation of the Iran-Israel conflict. The US attacked several nuclear sites in Iran, leading to a surge in investor uncertainty.

BNB’s rally is likely not because of Nano Labs’ announcement. The resurgence could be due to the possibility of peace talks between the US-Israel and Iran. Market sentiment has likely improved after President Trump announced a ceasefire.

Binance’s BNB coin has faced a substantial correction over the last month, following a market-wide selloff. The asset climbed to an all-time high of $788.84 on Dec. 4 of last year. BNB’s price has fallen by more than 19% since its 2024 peak.

Also Read: SEC Drops Lawsuit Against Binance: BNB Could Hit $1000 Next

There is also a possibility that the crypto market will face another correction if the ceasefire fails. Such a scenario could lead to another market-wide selloff. Investors could liquidate their crypto holdings to reduce risk exposure.

The intentions of Nano Labs to buy one billion dollars of BNB demonstrate the increasing interest in cryptocurrencies placed by public corporations. Its initiative may lead to an explosion in BNB’s adoption. It is possible that the asset will experience a massive rally in months.