VAPE Stock Surges 700% on $500M BNB Treasury Plan

Shares of CEA Industries (VAPE) surged over 700% on July 29, 2024, following the announcement of a $500 million BNB-focused crypto treasury plan [1]. The company, which operates in the Canadian vape industry, partnered with 10x Capital and YZi Labs to raise $500 million via a private investment in public equity (PIPE) offering. An additional $750 million in proceeds could be generated through exercised warrants, potentially providing the firm with up to $1.25 billion to purchase BNB, the fifth-largest cryptocurrency by market capitalization [1]. The funds will be used to acquire BNB over the next 12–24 months, with initial purchases expected to begin after the financing closes on July 31 [1].

The move mirrors strategies employed by companies like MicroStrategy, which has accumulated nearly $72 billion in Bitcoin through similar financing methods [1]. CEA Industries aims to leverage BNB’s institutional appeal, with 10x Capital Partner and incoming CEO David Namdar stating the initiative “bridges digital assets and mainstream capital markets” by offering traditional investors transparent access to BNB Chain [1]. YZi Labs, formerly Binance Labs and now the family office of Binance co-founders Changpeng Zhao and Yi He, highlighted the validation of institutional confidence in a publicly listed BNB treasury vehicle [1].

The announcement coincided with a new all-time high for BNB, which reached $858.34 earlier in the day before retreating to $838.42. The cryptocurrency has gained 2.3% in the last 24 hours, outperforming major crypto peers [1]. CEA Industries’ stock, now trading at $75.00, has risen approximately 851% year-to-date [1].

The surge follows a broader trend of publicly traded companies adopting crypto treasuries. In June, blockchain infrastructure firm Nano Labs launched a BNB treasury, driving its stock up nearly 300% [1]. Last week, Windtree Therapeutics announced plans to acquire up to $700 million in BNB, though its shares declined on the news [1].

Critics note risks associated with such strategies, including volatility in crypto markets and the speculative nature of token holdings. However, proponents argue that institutional-grade crypto treasuries can diversify corporate balance sheets and align with long-term digital asset adoption trends [1].

Source: [1] [VAPE Stock Skyrockets 700% on $500 Million BNB Crypto Treasury Plan] [https://decrypt.co/332094/vape-stock-skyrockets-700-on-500-million-bnb-crypto-treasury-plan]