BNB looks to be the next token to attract corporate entities to build a treasury. The digital asset has long had a track record as one of the blue-chip assets, and now it is 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 such as Patrick Horsman, Joshua Kruger, and Johnathan Pasch are behind the plan to create a BNB treasury company. According to reports, 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 is expected to seek a $100 million financing round, repeating the model adopted by Strategy and other public firms announcing the accumulation of Bitcoin, Ethereum, or other assets. Former Binance boss Changpeng Zhao has 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.
Changpeng Zhao praises BNB treasury idea
According to Zhao, BNB is the token of a public blockchain and is not linked or controlled by Binance. Following the news, BNB rose 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.
DEX activity causes growth in popularity
BNB also became one of the most sought-after tokens as Binance ended its 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 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 always been seen as a store of value and on-chain liquidity. BNB Smart Chain locks in over $5.7 billion, developing its ecosystem of lending protocols, DAO, and other treasuries. Holders of BNB also earn staking rewards, as well as the potential to participate in 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.