Nano Labs Stock Is Getting Hammered Wednesday: What's Going On?

Shares of Nano Labs Ltd NA are pulling back sharply Wednesday afternoon, a day after soaring on news of a major strategic shift towards the BNB cryptocurrency.

What To Know: The China-based Web 3.0 company announced on Tuesday a private placement agreement to raise up to $500 million through convertible senior notes to fund its new “BNB treasury strategy.”

The initial announcement sent the stock climbing. Nano Labs revealed its ambitious plan to acquire $1 billion worth of BNB, the native cryptocurrency of the Binance chain, with a long-term goal of holding 5% to 10% of its total circulating supply.

This move marks a significant expansion of its digital asset holdings, which previously focused on Bitcoin. The convertible notes have a 360-day maturity and an initial conversion price of $20 per ordinary share.

What Else: In a Form 6-K filing with the SEC on Wednesday, Nano Labs provided additional clarity. The company disclosed that the $500 million fundraise may occur in multiple tranches.

An initial closing has already taken place, with the company issuing two notes for a total of 600 Bitcoins, valued at approximately $63.6 million. This brings the company’s total Bitcoin holdings to 1,000. The filing also stipulated that note repayments are to be made in Bitcoin.

Price Action: According to data from Benzinga Pro, NA shares are trading lower by 20.3% to $11.83 Wednesday afternoon. NA has a 52-week high of $31.48 and a 52-week low of $2.75.

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How To Buy NA Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Nano Labs’ case, it is in the Information Technology sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

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