Shares in the Canadian vape company CEA Industries Inc. (VAPE) surged nearly 550% on Monday following an announcement that the firm plans to become the largest BNB treasury company in the US.
VAPE shares closed Monday at $57.59, a nearly 549% increase from its previous close of $8.88. The stock fell almost 7% during after-hours trading to $53.61.
CEA Industries declared Monday it intends to become the largest publicly traded BNB treasury company in the US, raising $500 million from private investors and securing an additional $750 million via warrants.
10X Capital and YZi Labs, which previously had ties to Binance co-founder Changpeng Zhao, are collaborating with CEA Industries.
Up to $1.25 Billion Possible for BNB Acquisition
The deal’s projected close Thursday would unlock a theoretical $1.25 billion, with media reports indicating CEA plans to use these proceeds to purchase BNB with the goal of creating access points for institutional and retail investors.
“By creating a U.S.-listed treasury vehicle, we are opening the door for traditional investors to participate in a transparent way,” said David Namdar, incoming CEO of CEA Industries. Namdar is a senior partner at 10X Capital and previously served as a founder and former co-head of trading at Galaxy Digital.
“BNB Chain is one of the most widely used blockchain ecosystems globally, yet institutional access has been limited until now,” Namdar added.
The company intends to increase its BNB stake through at-the-market offerings and other investment tactics, along with potentially adding revenue through staking and lending activities.
Several companies have recently announced stockpiling cryptocurrency strategies. Announcements along these lines have previously resulted in both corporate and crypto value increases.
BNB Holdings Predominantly Held by Zhao, Binance
According to February disclosures, 98.5% of Binance founder Changpeng Zhao’s public crypto portfolio consists of BNB. Media outlets last year reported Zhao and the exchange together held approximately 71% of the token’s circulating supply.
BNB’s introduction and the creation of the BNB Chain both date back to 2017, inextricably linking the token with the exchange.
Despite Changpeng Zhao’s restriction from managing Binance, the exchange’s creator remains its largest shareholder.
Related: Tron Inc. seeks $1B to grow TRX holdings as stock rallies
BNB was trading below $830 late Monday, reprieving a one-day loss of nearly 2% according to CoinGecko.
CEA Depth of Management Change
CEA Industries announced that numerous 10X Capital executives are set to take senior positions, including chief executive officer.
David Namdar (incoming CEO) and Russell Read (chief investment officer at 10X Capital) will assume corresponding executive roles at CEA. Saad Naja, a former Kraken product management director, will also join the company’s leadership team.
In early June, CEA Industries entered the Canadian vape market through the acquisition of retailer and manufacturer Fat Panda.
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