tl;dr
Windtree Therapeutics plans to raise up to $520 million through two financial agreements, including a $500 million equity line of credit and a $20 million stock purchase agreement, to acquire BNB cryptocurrency. The company aims to invest nearly $700 million in total to build a significant BNB reser...
Windtree Therapeutics (WINT), a publicly traded biotechnology company, has announced two major financial agreements to raise up to $520 million to acquire BNB (BNB), the fifth-largest cryptocurrency by market capitalization. The company plans to allocate nearly $700 million in total towards purchasing BNB as part of its strategic diversification into the cryptocurrency market.
On July 24, Windtree disclosed an agreement to sell common stock, creating an equity line of credit (ELOC) to raise up to $500 million. This ELOC allows the company to sell shares over time, providing flexible funding similar to a credit line. Additionally, Windtree entered into a $20 million stock purchase agreement with Build and Build Corp, bringing the combined potential funding to $520 million. The company intends to direct 99% of these funds to build a substantial BNB reserve. However, the use of the ELOC is contingent on stockholder approval to increase the company’s authorized shares.
CEO Jed Latkin emphasized the importance of stockholder approval for securing additional funds to purchase more BNB, signaling the move as a key component of Windtree’s overall strategy. This development closely follows the announcement of a strategic partnership with Kraken, made public on July 22. Kraken, a major cryptocurrency exchange, will manage Windtree’s BNB-focused crypto treasury program by providing custody, trading, and over-the-counter (OTC) services. This partnership aims to ensure secure management and liquidity of Windtree’s cryptocurrency assets, leveraging Kraken’s expertise in digital infrastructure.
The press release also noted a term sheet signed between Windtree and Build and Build Corp, potentially expanding future subscriptions by up to an additional $140 million, subject to shareholder approval. Windtree is not alone in institutional interest toward BNB; Nano Labs, a Web 3.0 infrastructure and product solutions provider, has revealed plans to acquire $1 billion worth of BNB. Nano Labs commenced this strategy with a $50 million BNB purchase earlier in July.
This institutional enthusiasm for BNB coincides with increased market activity for the cryptocurrency. According to data, BNB’s value has appreciated 17.5% over the past month, hitting an all-time high on July 23 before experiencing a modest price correction. These moves highlight growing confidence in BNB as a valuable digital asset within the crypto market landscape.