CEA Industries VAPE Stock Surges 600% on $1.25B BNB Treasury Initiative with Institutional Backing

Nasdaq-listed CEA Industries (VAPE) announced a $1.25 billion capital-raising initiative to establish the largest publicly listed BNB treasury, with its stock price surging 600% to $63.04 following the disclosure. The move, facilitated by 10X Capital and supported by YZi Labs—a firm co-founded by Binance co-founder Changpeng “CZ” Zhao—has drawn participation from over 140 institutional investors, including Pantera Capital, Arche Capital, and GSR. The treasury will leverage $500 million in private placement funds (comprising $400 million in cash and $100 million in crypto) and an additional $750 million from exercised warrants to purchase BNB, Binance Chain’s native token [1].

The announcement triggered immediate market reactions, with VAPE’s stock hitting a 24-hour high of $77 and posting a 713% year-to-date gain as of 2025. Analysts attributed the surge to speculative demand driven by institutional buyers and retail traders seeking exposure to BNB’s price trajectory. The firm’s new BNB treasury strategy, led by incoming CEO David Namdar and CIO Russell Read, aims to institutionalize BNB’s adoption in U.S. markets, positioning the token as a core asset for corporate treasuries and DeFi ecosystems [1].

BNB’s price also reached a record $860, with 24-hour trading volume exceeding $1.65 billion as derivatives traders increased open interest by 6% in the last 24 hours. The token’s performance coincided with strategic partnerships, including BNB Chain’s collaboration with Ondo Finance and xStocks to tokenize U.S. equities on-chain. Technical indicators showed BNB trading above key moving averages, though a Relative Strength Index (RSI) near 86 signaled potential short-term corrections due to profit-taking [1].

Market analysts highlighted the significance of the treasury’s size in reducing BNB’s circulating supply and attracting macroeconomic hedges against volatility. However, projections of BNB reaching $1,000 within months remain speculative, with forecasts citing the treasury’s growth as a catalyst but acknowledging dependencies on broader macroeconomic conditions and regulatory clarity [2]. Critics noted that CEA Industries’ re-rating could face scrutiny if the treasury’s execution falters, particularly during market downturns that test liquidity constraints or require rebalancing. The firm’s traditional business model, unrelated to blockchain, has also raised questions about the sustainability of its valuation amid rapid stock appreciation [1].

The deal’s structure, blending equity incentives and crypto allocations, has drawn attention to potential liquidity risks. While proponents argue that CEA’s pivot into blockchain infrastructure—a sector growing at 40% annually—justifies its re-rating, skeptics emphasize the need for clearer revenue-sharing terms between the company and BNB holders. Institutional investors, including YZi Labs, have not disclosed public timelines for deploying the treasury, leaving room for further price fluctuations.

As of the latest data, BNB’s price stabilized at $860, a 15% increase from pre-announcement levels, though it remains below the $1,000 threshold cited in some analyst projections. The partnership’s impact on CEA Industries’ earnings remains unquantified, as the firm has not disclosed specific metrics linking its BNB holdings to revenue generation.

Source:

[1] The Coin Republic: https://www.thecoinrepublic.com/2025/07/28/bnb-crypto-cea-industries-vape-stock-soars-600-on-largest-bnb-treasury/

[2] The Coin Republic: https://www.thecoinrepublic.com/