BNB seems to be the next crypto token to attract companies with the goal of building a treasury. The native exchange coin has a long track record as one of the blue-chip assets and is now joining the trend of altcoin treasuries.
Former Coral Capital executives are launching a BNB coin strategy, with the goal of raising $100M for initial purchases. A group of crypto hedge fund experts, including Patrick Horsman, Joshua Kruger, and Johnathan Pasch, is behind the plan to create a BNB treasury company. The entity will be the first of its kind, offering mainstream exposure to BNB with the potential for future purchases financed by equity.
To achieve that goal, the group aims for a reverse buyback of an unidentified Nasdaq-listed company. The company will then be renamed to Build&Build Corporation to reflect the Binance ecosystem ethos. After the acquisition, the company will seek a $100M financing round, repeating the model of Strategy and other public companies announcing the accumulation of BTC , SOL , ETH , or other assets.
Binance’s Changpeng ‘CZ’ Zhao, founder and former CEO of the top exchange, stated that Binance is not directly affiliated with the strategy plan. However, he sent out a generally favorable message on having a BNB ‘Strategy’, raising demand for the token.
Zhao, however, stated that BNB is the token of a public blockchain and is not linked to Binance or controlled by the exchange.
Following the news, BNB expanded by 2.4% to $624.46. The asset has been trading with relative stability for months, as it has encouraged long-term holding and staking. BNB is also among the assets shortlisted for a potential ETF, though still facing a long process of approval.
Treasury companies have achieved short-term stock growth. This time, the buyers have not announced the Nasdaq-listed firm to serve as the shell company. Crypto purchases are also used as a pivot for companies with distressed stock, in a bid to renew their activity and tap growth from the crypto market.
BNB grew in popularity with DEX activity
BNB also became more attractive as Binance ended its long-running legal battle with US regulators. The exchange is still a key hub for both centralized and decentralized activity, airdrops, and token sales, boosting the value of BNB.
BNB recovered from its recent lows, still holding onto its usual price range. | Source: Coingecko
BNB Chain and BNB Smart Chain recently posted record activity levels, carrying over 42% of on-chain transactions compared to all other chains. The network is mostly reflecting the usage of Binance Wallet, a direct hub for decentralized swaps.
The asset has already been used as a store of value and on-chain liquidity. BNB Smart Chain locks in over $5.7B, developing its own ecosystem of lending protocols, DAO, and other treasuries. Holding BNB also incurs staking rewards, as well as the potential to participate in additional token airdrops.
BNB is a utility token, raising the potential that both ETF and treasuries will not just sit idly in a wallet, but could earn passive income. Around 21% of the BNB supply is currently staked, and treasuries may take a while before making a dent in circulating tokens. Up to 50% of BNB tokens are already held in whale or exchange wallets, as well as early ICO buyers.
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