With this latest acquisition, its SOL holdings totaled nearly $98million. Stocks of the company surged by 17% Thursday, and then 30% in two days due to investor optimism about its stake plans and $112.5m capital raise. Nano Labs, a Chinese chipmaker revealed that it had acquired BNB for $50 million. It also intends to hold a maximum of 10% in the circulating token supply. The stock price fell 4.7% in spite of the announcement.
Figma, a design software company, also revealed that it has $70,000,000 in Bitcoin ETFs. It had reserved another $30,000,000 in USDC to be used for future Bitcoin purchases. It could be a sign that Figma has strong beliefs in BTC’s value over the long term. These developments show that corporates are increasingly adopting cryptoassets, despite concerns about volatility, the scrutiny of certain players in the industry, and the mixed reaction of investors.
DeFi Development Corp shares extend their rally
DeFi Development Corp. saw its shares surge 17% on Thursday, after it announced a $2.7 million strategic purchase of Solana tokens. It was revealed by the company that they purchased 17,760 Solana tokens at a price of average $153.10 Today’s VIral Level=BurlyWood per token. This brings their total Solana reserve to nearly $98 Million. DeFi Development Corp. clarified it intends to keep the tokens acquired for a long time and stake them in order to produce yield.
The company has made a number of strategic announcements that have triggered this latest increase in interest. The firm gained attention on Wednesday after it released its business update for June, in which plans were announced to raise an additional $112.5 millions through private placements. Stocks trading under the ticker “DFDV” rose to $23.80 at the end of Thursday’s trading from $18.47, the low on Wednesday. It was a 30 percent increase in two days.
Google Finance reports that the stock gained 0.8% more in trading after hours, closing at $24 for the day. The stock has risen over 2,733% in the past year, but it’s still 33% below its May high of 35.53.
DeFi Development Corp shares Where to buy over the last 5 days (SourceGoogle Finance )
Capital raised by the company will be used for ambitious projects. The company plans to use the capital raised for a forward-purchase transaction.
DeFi Development Corp. announced initially in April its plans to raise one billion dollars for Solana related investments. However, these plans were put on hold in June following the withdrawal of their SEC filing because of late submission of an required management report.
In a letter to shareholders dated 2 July, the company responded to concerns regarding financial resilience and stated that the balance sheet was structured in a way so as not be affected by prolonged market declines. It also explained how the structure of the balance sheet would ensure NAV/share stability over the long term. The firm, which reported a 30 percent drop year-overyear in its net revenue for the quarter ending March and a 15% decline in the net profit margin during the same period, is committed to protecting investor value by maintaining capital flexibility.
Nano Labs Buys $50M in BNB
A second company also plans to stock up on crypto. Nano Labs has recently taken its first big step towards a bold Treasury strategy, by buying $50 million of BNB. It is part of a long-term strategy to hold 5%-10% of BNB’s total supply.
It is estimated that the Chinese microchip maker will allocate $1 billion to BNB in time. With its latest acquisition, its total holdings of BNB and Bitcoin now amount to about $160 millions. Nano Labs, founded by Kong Jianping & Sun Qifeng in 2019, was created after they left the Canaan board. In 2022, the company became public and is a specialist in high-performance and high-throughput computing chips.
Investor enthusiasm is lacking despite the BNB acquisition being a high profile deal. Nano Labs stock fell more than 4,7% in Thursday’s regular session. After-hours trading saw an additional 2% drop, ending at $8.21. The stock has fallen by 106% since the announcement of the plan to sell $500 million worth of convertible notes in order to fund BNB’s treasury.
Nano Labs Stock Today’s Viral level= DarkMagenta in the last 24 hours (Source :Google Finance )
Nano Labs still has a lot of work to do if they want to control 10% of BNB. With a total market capitalization of $93.4billion, the circulating coin supply is approximately 145.9million coins. At current prices, 10% would cost $926,000,000.
Binance is also complicating things by burning tokens, with a supply initially fixed at 200,000,000. According to a Forbes article from June, Binance’s former CEO Changpeng Zhao and Binance still hold 71% of BNB.
The trend for companies to hold crypto as part of their corporate treasury is also being scrutinized. Anthony Scaramucci of SkyBridge Capital recently questioned whether such strategies would be sustainable in the long term. Scaramucci, who acknowledged that he was bullish on Bitcoins, said that some investors may prefer to have direct access to these assets than invest in companies that own them. He said that you might have done better to invest $10 in Bitcoin.
Figma holds $70M worth of Bitcoin ETFs
In a filing earlier this week, the design software firm Figma revealed that it held close to 70 million dollars in Bitcoin ETFs and had allocated an additional 30 million dollars in stablecoins as a reserve for future Bitcoin purchases. On Tuesday, the company filed paperwork with the US Securities and Exchange Commission for a New York Stock Exchange Initial Public Offering under the ticker “FIG.”
The SEC filing of Figma (Source:SEC )
Figma announced investing $55,000,000 into Bitwise Bitcoin ETFs (BITB) in March 2024. The investment appreciated from $55 million to $69,5 millions by the March 31st quarter end. This is an unrealized 26% gain. Figma also revealed it held USDC stablecoin worth $30 million in addition to the ETF.
Board of directors approved the distribution on May 8, 2020, stating explicitly that stablecoins would be acquired and converted to Bitcoin later. According to the filing, the company purchased 30 million USDC tokens at $1 each with the intent of investing those funds in Bitcoin later.
Bitwise CEO Hunter Horsley has praised Figma’s strategy and highlighted that it now has approximately 5% in Bitcoin on its balance sheet. He believes more companies will follow his lead and incorporate Bitcoin in their reserves.
