China Renaissance Holdings Ltd., an investment bank based in Beijing, is in talks to raise about $600 million to start a U.S.-listed digital-asset treasury company that focuses on BNB, the native token linked to Binance.
According to a report by Bloomberg, the move is in line with what China Renaissance has already promised: according to filings and strategic memoranda, the company has already promised to invest about $100 million in BNB assets.
Key players in the proposed funding are YZi Labs, the family office of Changpeng Zhao, who co-founded Binance, and China Renaissance, which are both expected to contribute. The joint capital injection is intended to support a publicly traded vehicle that will actively manage and hold BNB, thereby providing institutions with greater exposure to the token.
Emergence of BNB treasuries
In the recent months, many organizations and firms have shifted their focus to create a BNB-backed treasury. Last week, CEA Industries Inc. said that it owns 480,000 BNB tokens worth about $585.5 million. This makes it the world’s biggest BNB treasury company. The holdings, which were bought for an average of $860 per token, are worth a total of $412.8 million, plus $77.5 million in cash reserves.Â
Earlier this year, B Strategy also announced that it aimed to raise 1 billion BNB treasury to support its ecosystem growth. Similarly, Windtree Therapeutics also embraced the BNB treasury by raising a capital of $200 million.
BNB’s astonishing surge
On October 13, the Binance Token or BNB rose by 16% in the last 24 hours to a new all-time high of $1,370. According to data by CoinMarketCap, BNB was trading for about $1,312 at the time of publishing. The surge in BNB price comes after one of the worst flash crashes in crypto history, which took away more than $19 billion in market value in just one day.
Market analysts note that BNB did better than most top altcoins, even during sharp price drops. On Friday, BNB fell to a low of $1,024 but quickly bounced back to its daily range, showing that traders and investors were more confident in the altcoin.
Also Read: Bitcoin and Ethereum Price Surge After Historic Single-Day Crash
