Shares in the Canadian vape company CEA Industries Inc. (VAPE) surged nearly 550% after revealing plans to become the largest BNB treasury company in the US. VAPE shares closed trading on Monday at $57.59, up nearly 549% from its $8.88 close on Friday. It\u2019s seen an almost 7% drop after hours to $53.61. CEA Industries said earlier on Monday that it plans to become the largest publicly traded BNB treasury company in the US with a $500 million share sale to private investors, with an additional $750 million in cash available through exercised warrants. The firm is collaborating with the investment firm 10X Capital and YZi Labs, which previously marketed itself as the family office of the Binance co-founder Changpeng Zhao. YZi Labs said earlier this month that it was backing 10X Capital to create a BNB treasury company. The deal could potentially unlock $1.25 billion for CEA Industries after the deal\u2019s expected close on Thursday, which it intends to use to acquire BNB, creating a gateway for institutional and retail investors to participate in the BNB Chain ecosystem. By creating a US listed treasury vehicle, the company opens the door for traditional investors to participate in a transparent way. BNB Chain is one of the most widely used blockchain ecosystems globally, yet institutional access has been limited until now. The company plans to bolster its BNB holdings over the next two years through at-the-market offerings and other proven strategies. It will also look to make revenue from its holdings through staking and lending.
Several public companies have pivoted to stockpiling crypto this year. In some cases, the announcements have boosted the value of the company and the crypto token it\u2019s buying. Zhao revealed in February that 98.5% of his crypto portfolio was BNB, without specifying the total value of his holdings. Forbes reported in June 2024 that Zhao and Binance together controlled what was then 71% of the BNB tokens in circulation. Binance is deeply tied to BNB, as it launched the token and the BNB Chain in 2017, and still offers perks to BNB holders on its platform. While the exchange is not involved in developing the token or the blockchain, some investors could see BNB as a way to indirectly gain exposure to the Binance ecosystem. Zhao is not managing anymore Binance but he is still the exchange\u2019s biggest shareholder. BNB has fallen 1.8% over the past 24 hours to trade below $830 after hitting an all-time high just above $858 earlier on Monday. CEA Industries said that many of 10X Capital\u2019s executives would take over the top roles at the vape company. Along with Namdar taking over as CEO, 10X Capital\u2019s chief investment officer Russell Read will take on the same role at CEA Industries, while former Kraken product management director Saad Naja will also form part of CEA Industries\u2019 management team. CEA Industries entered Canada\u2019s nicotine vape market after it bought vape retailer and manufacturer Fat Panda in early June.<\/p>\n","protected":false},"excerpt":{"rendered":"
Shares in the Canadian vape company CEA Industries Inc. (VAPE) surged nearly 550% after revealing plans to become the largest BNB treasury company in the US. VAPE shares closed trading on Monday at $57.59, up nearly 549% from its $8.88 close on Friday. It\u2019s seen an almost 7% drop after hours to $53.61. CEA Industries […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"pagelayer_contact_templates":[],"_pagelayer_content":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-141","post","type-post","status-publish","format-aside","hentry","category-news","post_format-post-format-aside"],"yoast_head":"\n