Nano Labs (NA), a Nasdaq-listed designer of high-throughput computing chips, has struck a private agreement to sell $500 million in convertible notes that mature in 360 days to buy Binance's BNB BNB token for its balance sheet.

The unsecured notes will carry no coupon and can be swapped at any time for the company’s Nasdaq-traded Class A shares at an initial price of $20. If investors hold to term, Nano Labs must repay the principal in full.

The firm said in a press release that the raise is the first step in a treasury program built around Binance’s BNB.

The company intends to buy as much as $1 billion in BNB through note sales and other private placements, with a long-term goal of owning 5%–10% of the token’s circulating supply. BNB’s total market capitalization currently stands at $90.3 billion.

Nano Labs will evaluate BNB’s security and value before making the move. The firm pointed out that the agreement isn’t yet closed.

Nano Labs’ shares surged more than 100% since the announcement was made to now trade at $22.

Its press release comes shortly after a group of former hedge fund executives revealed plans to raise $100 million to buy BNB through a Nasdaq-listed shell company.