CEA Industries VAPE Shares Surge 549% on Strategic Pivot to BNB Treasury Amid $1.25B Funding Plan

CEA Industries Inc. (VAPE), a Canadian vaping company, saw its shares surge nearly 550% on Monday after announcing a strategic shift to become the largest publicly traded BNB treasury firm in the U.S. The stock closed at $57.59, up 549% from $8.88 on Friday, before slipping 7% in after-hours trading to $53.61 [1]. This dramatic move follows the company’s plan to raise $500 million through a private share sale and leverage $750 million in exercisable warrants, potentially unlocking up to $1.25 billion to acquire BNB, the native token of the BNB Chain. The funds aim to create a “transparent gateway” for institutional and retail investors to engage with the BNB ecosystem, as stated by incoming CEO David Namdar, a senior partner at 10X Capital.

The pivot is part of a broader trend of public companies acquiring crypto assets to drive shareholder value. CEA Industries, which previously acquired vaping retailer and manufacturer Fat Panda in June 2025 to enter Canada’s nicotine vape market, is now repositioning itself as a hybrid entity blending traditional finance with blockchain exposure. The company’s strategy includes bolstering BNB holdings via at-the-market offerings and generating revenue through staking and lending. Executives from 10X Capital and YZi Labs—linked to Binance co-founder Changpeng Zhao—will lead the restructured CEA management team, including Namdar as CEO, Russell Read as CIO, and Saad Naja, a former Kraken product director.

The BNB Chain, launched by Binance in 2017, remains central to this transition. Zhao, Binance’s largest shareholder, disclosed in February that 98.5% of his crypto portfolio is BNB. As of June 2024, Zhao and Binance collectively controlled 71% of circulating BNB tokens, according to Forbes [1]. While Binance is not directly involved in developing the token or blockchain, the exchange offers perks to BNB holders, such as fee discounts. Zhao’s U.S. management ban under a 2024 guilty plea for money laundering violations has not diminished his influence over the token.

BNB’s price fluctuated sharply on Monday, hitting an all-time high of $858 before retreating 1.8% to below $830 by late trading, according to CoinGecko. The token’s volatility underscores the speculative nature of CEA’s pivot. Namdar emphasized the initiative’s goal to democratize institutional access to the BNB Chain, which he described as a “globally adopted blockchain ecosystem.” However, the long-term viability of crypto treasury models in public markets remains unproven, with past examples like Tron Inc.’s $1 billion TRX acquisition driving short-term stock gains but uncertain long-term outcomes.

The deal, expected to close by Thursday, positions CEA Industries as a key player in the BNB Chain ecosystem. By leveraging 10X Capital’s expertise and YZi Labs’ connections, the company aims to bridge traditional finance and blockchain innovation. Yet, the transition raises questions about regulatory scrutiny, market volatility risks, and the sustainability of revenue streams from staking and lending. Analysts have not issued forecasts for VAPE’s stock post-announcement, leaving investors to weigh the potential of a crypto-focused treasury model against the company’s history in the vaping sector.

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