Nano Labs (NA) shares skyrocketed Tuesday when the Hong Kong-based chipmaker announced it would be offering $500 million in interest-free convertible notes as part of its plan to purchase $1 billion worth of the Binance Coin (BNB) cryptocurrency.

The company said several investors have agreed to subscribe to the notes, which will mature in 360 days. During that time, holders may convert the notes into Class A Nano Labs shares. The conversion price is set at $20 per share, nearly double the stock’s closing price yesterday.

Nano Labs explained that the offering "marks an important step in the Company’s strategic growth." It added that in the first step, it plans to use the money raised, along with private funding, to make its BNB acquisition. The company noted that its long-term strategy is "to hold 5% to 10% of BNB’s total circulating supply." BNB is the world's fifth-largest cryptocurrency, with a market cap of about $90 billion, per CoinMarketCap.

Nano Labs shares doubled to about $22 to trade at their highest level in two years. The price of BNB was up about 2.7%.

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