CEA Industries Raises $500M for Largest US BNB Treasury, VAPE Stock Surges 550% in 2025

CEA Industries Inc. (NASDAQ: VAPE), a Canadian vape company, has announced a $500 million private placement to establish what it describes as the largest publicly traded BNB treasury company in the United States, with potential gross proceeds expanding to $1.25 billion through warrant exercises [1][3][6][9][10]. The funds will be allocated to acquiring BNB, the fourth-largest cryptocurrency by market capitalization, which surpassed $100 billion [10]. The offering includes $400 million in cash, $100 million in crypto, and up to $750 million in additional funds via warrant exercises [10].

The initiative, which attracted over 140 institutional and crypto-native investors—such as 10X Capital, YZi Labs, Pantera Capital, and Blockchain.com—reflects a strategic pivot from CEA’s traditional vape business to a crypto-focused treasury model [10]. The company’s leadership now includes David Namdar (Galaxy Digital co-founder) as CEO, Russell Read (former CIO of CalPERS and Deutsche Bank Asset Management) as CIO, and Saad Naja (formerly of Kraken and Exinity), underscoring institutional credibility [10]. This shift mirrors MicroStrategy’s Bitcoin treasury strategy but applies it to BNB, creating a regulated entry point for traditional investors into the BNB blockchain ecosystem [10].

The stock price of VAPE surged over 550% following the initial announcement in July 2025 [3], with further speculation driving an 800% single-day rally linked to meme stock dynamics and investor enthusiasm for the BNB treasury approach [2]. Analysts highlight the move as a milestone for institutional cryptocurrency adoption, as it introduces a publicly traded vehicle for BNB exposure on a Nasdaq-listed company [10]. Unlike Bitcoin-focused treasuries, this strategy emphasizes BNB’s utility in decentralized finance (DeFi), payments, and enterprise applications, positioning it as a long-term investment rather than a speculative asset [10].

Post-closing, expected by July 31, 2025 [10], CEA will prioritize acquiring BNB and implementing governance measures for the treasury. The company also plans to enhance transparency by verifying holdings and engaging with the BNB ecosystem [10]. Regulatory developments in the U.S., including proposed crypto legislation, are cited as factors improving the environment for such treasury vehicles [10]. However, analysts caution that risks remain, including BNB’s price volatility and challenges in scaling the treasury strategy [10].

The initiative aligns with broader trends of institutional adoption of altcoins, as evidenced by similar moves from companies like Windtree Therapeutics, which announced a $520 million BNB acquisition plan in July 2025 [10]. By leveraging institutional-grade custody solutions with Kraken [10], CEA aims to validate BNB as a viable asset class for traditional capital markets.

Source:

[1] CEA Industries and 10X Capital, with the support of YZi

[https://www.globenewswire.com/news-release/2025/07/28/3122430/0/en/CEA-Industries-and-10X-Capital-with-the-support-of-Yi-Labs-announce-500-Million-Private-Placement-to-Establish-Largest-Publicly-Listed-BNB-Treasury-Company-in-the-World-NASDAQ-VAP.html

[2] A little-known vape company is up 800% in a day after its ...

[https://finance.yahoo.com/news/little-known-vape-company-800-172934558.html

[3] Up 6x, Is VAPE Stock The Next Big Crypto Treasury Play?

[https://www.forbes.com/sites/greatspeculations/2025/07/29/up-6x-is-vape-stock-the-next-big-crypto-treasury-play/

[4] CEA Industries Stock Is Seeing a Meme-Like Surge ...

[https://www.businessinsider.com/cea-industries-vape-stock-price-bnb-treasury-crypto-meme-stocks-2025-7

[5] Largest Publicly-Listed BNB Treasury To Launch In The US ...

[https://www.mitrade.com/insights/news/live-news/article-3-994742-20250729

[6] CEA Industries Secures $500M for BNB Acquisition

[https://www.theglobeandmail.com/investing/markets/stocks/VAPE/pressreleases/33716409/cea-industries-secures-500m-for-bnb-acquisition/

[7] Best Crypto to Buy as Company Aims for Biggest BNB ...

[https://bitcoinist.com/best-crypto-to-buy-as-company-aims-for-biggest-bnb-treasury-worldwide/

[8] This Company Is Surging on Plans to Become the ...

[https://finance.yahoo.com/news/company-surging-plans-become-microstrategy-184403360.html

[9] CEA Industries and 10X Capital Raise $500M for U.S. BNB ...

[https://www.ainvest.com/news/cea-industries-10x-capital-raise-500m-bnb-treasury-560-stock-surge-2507/

[10] $500M Private Placement Creates Largest Public BNB ...

[https://www.stocktitan.net/news/VAPE/cea-industries-and-10x-capital-with-the-support-of-y-zi-labs-xdvrepd6wbvr.html