BNB Price Soars After Binance Secures $2B Investment from MGX

BNB, Binance's native token, climbed nearly 7% higher on news after the exchange secured a $2 billion investment from MGX, an Abu Dhabi sovereign wealth fund.

Binance, a leading cryptocurrency exchange, has reportedly secured a $2 billion investment from an Abu Dhabi sovereign wealth fund, known as MGX, in a groundbreaking deal.

This unprecedented transaction marks Binance’s first-ever institutional investment and the largest investment in the crypto space to date, being fully backed by stablecoins. The investment will be made in the form of an equity stake in Binance, and the terms of the deal are still being finalized.

According to a Binance report, this is MGX’s inaugural investment in the cryptocurrency and blockchain sectors. Binance highlighted that an investment in the exchange will enable the fund to amplify its support for blockchain’s transformative role in society.

This move provides MGX with the opportunity to partner with a premier player in the crypto industry, further advancing innovation at the intersection of AI, blockchain technology, and finance.

BNB Price Soars on Investment News

Immediately reacting to Wednesday’s announcement, BNB surged nearly 7% higher. The cryptocurrency began the day’s trade with a 0.48% uptick within the past 24 hours, trading at $572.04 at the time of writing.

The previous day’s rally saw BNB recover from a recent pullback, which saw its price briefly dip to a $508.5 local low.

Tuesday’s rally saw BNB bật bật từ mức thấp nhất trong ngày là $544,9 to a high of $575.1. Credit : Binance

The bullish momentum saw BNB’s price climb further in early Thursday trading. The altcoin was trading for $581.4 at the time of writing, a 2.29% increase from Wednesday’s closing price. BNB’s cumulative gain following the announcement within the past 24 hours was 6.81%, according to data from TradingView.

What This Means for BNB Holders

While most cryptocurrencies await a wholesale trend reversal to participate in an expected crypto market bull run, specific adoption moves, such as the latest one by MGX and Binance, could trigger isolated rallies.

Importantly, Wednesday’s recovery saw BNB soar above critical resistance at $560, flipping the zone into a strong support level that could influence the crypto asset’s price behavior.