Biotech firm Windtree has announced on Wednesday it will create a BNB treasury, saying it will become the first publicly listed NASDAQ company to do so. To finance the treasury, Windtree has entered into a $60 million securities purchase agreement with the ability to accumulate an additional $140 million in subscriptions.
“We are thrilled to propose a groundbreaking BNB strategy to the U.S. market…This innovative solution will offer investors targeted exposure to Binance and BNB, addressing what we believe to be a critical gap in the U.S. investment landscape,” said Build & Build Corp’s director, Patrick Horseman.
BNB is currently the fifth-largest cryptocurrency by market capitalization and has an average daily trading volume of $2 billion.
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“Today marks a pivotal moment for Windtree… This transaction secures up to $200 million from institutional investors, offering our shareholders a unique opportunity to gain exposure to a BNB-focused crypto treasury strategy.” said Jed Latkin, Chief Executive Officer of Windtree.
The move by Windtree is one of many companies allocating a portion of their investments into cryptocurrency, attempting to form a crypto treasury strategy. Firms then offer exposure to crypto through the purchase of company shares.
Analysts have raised concerns about the utility of such an investment scheme, particularly for Michael Saylor’s company, Strategy, which is the largest corporate holder of Bitcoin.
Portfolio Manager Michael Lebowitz conducted an in-depth study and pointed out various issues associated with the stock ($MSTR), namely its high levels of debt, attempts to drive higher volatility on the stock by hyping up their Bitcoin purchases, and an overvalued investment in Bitcoin, adding significant risk for shareholders if the price of BTC were to decline sharply.
