CEA Industries VAPE stock surges 550% after pivot to BNB treasury firm raises $1.25B

CEA Industries Inc. (VAPE), a Canadian vaping company, experienced an extraordinary 550% surge in its stock price on Monday following an announcement to transform into a U.S.-listed BNB (BNB) treasury firm. Shares closed at $57.59, up from $8.88 on Friday, marking the highest close in over three years [1]. The stock retreated by 7% in after-hours trading to $53.61 as traders digested the dramatic shift. The company revealed plans to raise $500 million through a private investment, with an additional $750 million in cash available via exercised warrants, positioning itself as the largest publicly traded BNB treasury firm in the U.S. [2].

The strategic pivot is backed by 10X Capital, a crypto-focused hedge fund, and YZi Labs, previously associated with Binance co-founder Changpeng Zhao. YZi Labs has supported 10X Capital’s initiative to create the treasury firm, a move aligned with broader trends of traditional companies entering the crypto sector [3]. CEA Industries’ incoming CEO, David Namdar, emphasized the firm’s role in opening institutional access to the BNB Chain ecosystem, a blockchain platform widely adopted but historically underrepresented in traditional investment portfolios. “By creating a U.S.-listed treasury vehicle, we are opening the door for traditional investors to participate in a transparent way,” Namdar stated [4].

The $1.25 billion in capital will be allocated to accumulate BNB through at-the-market offerings and other strategies, with revenue expected from staking and lending activities. This approach mirrors recent corporate strategies where public companies have acquired digital assets to drive stock valuations and token prices [5]. BNB’s price fluctuated during the announcement period, peaking at $858 before retreating to below $830, reflecting market volatility.

The leadership transition underscores the company’s commitment to its new business model. 10X Capital’s chief investment officer, Russell Read, and former Kraken executive Saad Naja will join CEA Industries’ management team, alongside Namdar [6]. The firm also recently acquired Fat Panda, a Canadian vape retailer, to solidify its presence in the nicotine market prior to its crypto pivot.

Binance’s influence over BNB remains significant, with Zhao and the exchange controlling a majority of the token’s supply. Despite Zhao’s legal challenges in the U.S., his indirect ties to YZi Labs could amplify perceptions of institutional backing for the BNB Chain. However, CEA Industries clarified that Binance will not participate in the treasury firm’s operations [7].

The transformation highlights the growing intersection of traditional finance and crypto markets. By leveraging a corporate structure to manage BNB, CEA Industries aims to address gaps in institutional access to blockchain ecosystems. The stock’s meteoric rise reflects investor enthusiasm for speculative restructurings, though post-market volatility signals caution. The firm’s success will depend on BNB’s price trajectory and the efficiency of its staking/lending strategies. If BNB appreciates, further gains for VAPE are possible, but crypto market risks remain. This case exemplifies how underperforming equities attract speculative bets through strategic overhauls, particularly in high-growth sectors like crypto.

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

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

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

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

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

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

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