CEA Industries Plunges 10.22% on BNB Treasury Pivot

On July 29, 2025, CEA Industries experienced a significant drop of 10.22% in pre-market trading, marking a notable shift in investor sentiment towards the company.

CEA Industries has recently announced a major strategic pivot, transforming into a BNB treasury vehicle through a $500 million private placement. This move is part of a broader trend where publicly traded treasury companies are emerging as a new asset class for U.S. investors, following the success of Bitcoin-focused vehicles. The deal includes $400 million in cash and $100 million in crypto, with potential warrant exercises that could bring in an additional $750 million. This transaction is backed by over 140 subscribers, including major crypto investors like YZi Labs, Pantera Capital, and Blockchain.com.

The company's new leadership team, which includes David Namdar as CEO and Russell Read as CIO, brings substantial institutional credibility. Namdar, a co-founder of Galaxy Digital, and Read, former CIO of CalPERS, are expected to lead the company's treasury strategy, focusing on staking and other BNB ecosystem opportunities. This transformation positions CEA Industries as the largest publicly-traded BNB Treasury Company in the world, offering investors a regulated exposure to the BNB ecosystem without direct cryptocurrency ownership.

Following the closing of the PIPE, CEA Industries will begin deploying funds to acquire BNB, creating a gateway for institutional and retail investors to participate in the BNB Chain ecosystem. The company's common stock will continue to trade on the Nasdaq Capital Market under the ticker "VAPE," with the updated treasury strategy effective immediately following the closing, which is expected to take place on or about July 31, 2025. The company will emphasize transparency and verification of holdings, strong engagement with the BNB ecosystem and community, and additional updates on BNB acquisitions, treasury growth, and governance measures are expected in the coming weeks.