Nano Labs Ltd. announced that it will prepay all outstanding convertible bonds, returning 300 BTC to each bondholder and an additional 4.5 BTC as compensation. The company has committed to completing the full repayment within 90 days of the announcement, a move that signals a proactive approach to risk management and investor protection.
The repayment terms—300 BTC plus 4.5 BTC per bond—represent a significant outflow of cryptocurrency, but the company has positioned itself to absorb the impact through its growing BNB reserve and cash balances. By eliminating the debt obligation, Nano Labs reduces exposure to Bitcoin price volatility and frees liquidity that can be redirected toward its strategic focus on Web 3.0 infrastructure and AI‑driven computing services.
Nano Labs’ decision aligns with its broader shift toward a crypto‑centric balance sheet. The firm has been building a BNB treasury, with plans to acquire up to $1 billion of BNB, and has used proceeds from a $500 million convertible‑notes purchase agreement entered into in June 2025 to fund that acquisition. The prepayment therefore removes a variable‑rate debt instrument that could have amplified losses if Bitcoin prices fell sharply, while preserving capital for future growth initiatives.
Financially, the company reported a decline in net revenue for the first half of 2025 compared with the same period in 2024, but it narrowed its net loss and increased cash and cash equivalents. The improved cash position provides a buffer that supports the bond repayment and underpins the company’s ability to continue investing in its BNB reserve and other strategic projects.
Management emphasized the importance of maintaining a strong balance sheet and prudent risk controls. Chairman and CEO Jianping Kong stated, “Recent market volatility has prompted us to reinforce our risk‑management framework and take further steps to protect investor interests. Nano Labs remains committed to maintaining a strong balance sheet and prudent risk controls, while continuing to pursue long‑term growth and innovation in the Web 3.0 and computing‑power sectors.”
The prepayment is expected to enhance investor confidence and position Nano Labs for continued expansion in its core Web 3.0 and AI computing markets, while the company’s ongoing financing activities and share repurchase program signal a disciplined approach to capital allocation.
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