BNB Network Company (Nasdaq: BNC), the treasury arm of CEA Industries Inc., announced the purchase of 200,000 BNB tokens valued at $160 million. This move makes BNC the world’s largest corporate holder of BNB.
According to the announcement, the purchase is part of a $500 million private funding round led by 10X Capital and YZi Labs. BNC is concentrating its treasury on BNB only, and it is the primary reserve asset of the company.
BNB is a native token of the BNB Chain, a well-known blockchain platform with thousands of decentralized apps (dApps) and millions of users. It is the fourth-largest cryptocurrency by market capitalization, and has a total value locked (TVL) of $12.3 billion, which is a measure of assets actively utilized in its network.
BNB Network Company restructured its leadership to support this strategy. David Namdar, Co-Founder of Galaxy Digital, is now CEO. Russell Read, former CIO of CalPERS, and Saad Naja, ex-Kraken director, also joined the leadership team. Further, Hans Thomas and Alexander Monje from 10X Capital joined BNC’s board.
BNB Price Jumps After Announcement
Following the announcement, BNB’s price jumped over 2.5% to $826 within two hours, trading at $822.30 at the time of writing, according to CoinMarketCap.
Analysts compare BNC’s BNB strategy to MicroStrategy’s well-known Bitcoin investments, dubbing BNC the “BNB version of MicroStrategy.” BNC will continue to purchase BNB until the initial capital is exhausted and can issue warrants to raise up to $1.25 billion to buy more.
This will increase the interest of institutions in BNB, particularly in the U.S., where it is currently underrepresented.
Also Read: BNB Achieves New ATH: Can It Hit $1,000 Next?
