CEA Industries' Shares Surge 550% After Strategic Pivot to BNB Treasury

The shares of CEA Industries Inc. (VAPE), a Canadian vape company, surged nearly 550% on July 24, 2025, following its announcement of a strategic pivot to become the largest publicly traded BNB treasury company in the United States. The stock closed at $57.59, up from $8.88 on Friday, though it dipped 7% in after-hours trading to $53.61. The company outlined plans to raise $500 million through a private investment and $750 million via exercised warrants, with proceeds to be used for acquiring BNB, creating a vehicle for institutional and retail investors to access the BNB Chain ecosystem. This move positions CEA as a bridge between traditional finance and cryptocurrency, leveraging partnerships with 10X Capital and YZi Labs, a firm previously associated with Binance co-founder Changpeng Zhao [1].

CEA Industries’ incoming CEO, David Namdar, a senior partner at 10X Capital, emphasized the initiative’s role in expanding institutional access to BNB Chain, one of the most widely used blockchain ecosystems globally. The company aims to bolster its BNB holdings over the next two years through at-the-market offerings and staking strategies, generating revenue from its treasury. Notably, 10X Capital’s executives, including CIO Russell Read and former Kraken director Saad Naja, will assume top roles at CEA, signaling a significant leadership overhaul [1].

The pivot aligns with a broader trend of traditional firms pivoting to cryptocurrency treasuries. Earlier in 2025, CEA acquired Fat Panda, a Canadian vape retailer, before shifting focus to crypto. This strategy mirrors recent moves by companies like Tron Inc., which sought $1 billion to expand TRX holdings amid a stock rally. However, CEA’s move stands out for its scale and direct ties to BNB, the native token of Binance, which controls a substantial portion of the token’s circulating supply. Zhao, who holds 98.5% of his crypto portfolio in BNB, remains Binance’s largest shareholder despite a U.S. ban on his management role due to money laundering allegations [1].

The announcement triggered immediate volatility in BNB itself, which rose to an all-time high of $858 earlier on July 24 before retreating to below $830. Analysts note that while CEA’s pivot could democratize access to BNB Chain, the company’s success hinges on market confidence in its treasury management and the broader crypto ecosystem’s stability. The $1.25 billion in potential funding also raises questions about execution risks, particularly given the regulatory scrutiny facing crypto projects and the reputational baggage linked to Zhao’s involvement [1].

The transition underscores the growing intersection of traditional and digital asset markets. By framing BNB as a transparent, institutional-grade investment, CEA aims to attract a new demographic of investors while capitalizing on Binance’s entrenched position in crypto infrastructure. Yet, the deal’s long-term viability will depend on factors such as BNB’s price performance, regulatory developments, and the company’s ability to execute its treasury expansion without exposing itself to market downturns or governance controversies.

Sources:

[1] https://cointelegraph.com/news/canadian-vape-company-shares-jump-pivot-bnb-treasury

[2] https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96510392/canadian-vape-company-jumps-550-in-pivot-to-bnb-t

[3] https://mx.advfn.com/bolsa-de-valores/COIN/BTCUSD/crypto-news/96510391/coinbase-reportedly-in-advanced-talks-to-buy-coind