BNB Pivot Backfires? Nano Labs Launches Share Buyback as Stock Bleeds 40%

Core Insights - Nano Labs Ltd, a Nasdaq-listed Web3 firm, announced a $25 million share repurchase program, leading to a 7% premarket rise in its shares, although the stock is still down nearly 40% year-to-date [1][3] Group 1: Share Repurchase Program - The board of directors authorized a buyback program allowing Nano Labs to repurchase up to $25 million worth of shares over the next 12 months [2] - The repurchase will be funded from existing cash reserves and proceeds from the liquidation of crypto assets [2] - The program allows flexibility for share buybacks through open market transactions, privately negotiated deals, or block trades, in compliance with securities laws [3][4] Group 2: Financial Performance - Nano Labs shares have declined 37% year-to-date, with a market capitalization of approximately $130 million [3] - Despite the decline, the company has been strengthening its balance sheet and investing in crypto [3] Group 3: BNB Exposure - In June, Nano Labs entered a $500 million convertible note agreement to acquire BNB, with plans to expand holdings to as much as $1 billion, aiming to control 5% to 10% of BNB's total circulating supply [5] - The company's chairman and CEO, Jianping Kong, purchased 480,000 Class A shares in August 2025, indicating confidence in the firm [6] Group 4: Strategic Developments - Nano Labs has pursued corporate initiatives to strengthen its Web3 infrastructure, including an At-The-Market Offering Agreement targeting up to $45 million in share sales for research and development [7] - The company signed a Memorandum of Understanding with TradeUP Securities to build tokenized US equities via blockchain integration [7] - Earlier in September, Nano Labs made an equity investment in CEA Industries Inc. and successfully transferred from the Nasdaq Capital Market to the Nasdaq Global Market [8]