Shares in Canadian vape firm CEA Industries Inc. (VAPE) surged nearly 550% on Monday following the announcement of an ambitious plan to become the largest publicly traded BNB treasury holder in the United States.
VAPE closed at $57.59, marking a 549% jump from Friday’s closing price of $8.88.
The rally brought the stock to its highest close in more than three years, although it dipped slightly to $53.61 in after-hours trading.
$1.25 Billion to Acquire BNB
CEA Industries revealed it plans to raise $500 million through a share sale to private investors, with an additional $750 million potentially available through warrant exercises.
Altogether, the company may have access to $1.25 billion to acquire Binance Coin (BNB), which it said would enable institutional and retail investors to gain exposure to the BNB Chain ecosystem.
The deal is expected to close on Thursday.
Strategic Partners and Goals
CEA is working with 10X Capital and YZi Labs, which previously operated as the family office of Binance co-founder Changpeng Zhao.
YZi Labs recently partnered with 10X Capital to develop a U.S.-based BNB treasury vehicle.
Incoming CEA CEO David Namdar, also a senior partner at 10X Capital, explained the motivation behind the move.
“By creating a U.S.-listed treasury vehicle, we are opening the door for traditional investors to participate in a transparent way,” he said.
“BNB Chain is one of the most widely used blockchain ecosystems globally, yet institutional access has been limited until now.”
The company aims to build its BNB holdings using at-the-market offerings and revenue-generating strategies like staking and lending.
Broader Trend of Corporate Crypto Holdings
Several companies have pivoted toward accumulating crypto this year, often triggering surges in both company stock prices and token values.
In February, Zhao disclosed that 98.5% of his crypto holdings were in BNB, although he didn’t reveal the total value.
Forbes reported in June 2024 that Zhao and Binance collectively controlled around 71% of all BNB tokens in circulation.
Binance, which launched BNB and the BNB Chain in 2017, still offers perks for token holders on its platform.
Although Binance no longer develops the token or blockchain, investors may see BNB as a route to indirectly gain exposure to Binance’s ecosystem.
Leadership Overhaul at CEA
CEA Industries also announced that several 10X Capital executives would assume leadership roles within the company.
Namdar will become CEO, while 10X Capital’s Chief Investment Officer Russell Read will take on the same role at CEA.
Former Kraken executive Saad Naja will also join the management team.
CEA entered the Canadian nicotine vape market after acquiring Fat Panda, a retailer and manufacturer, in early June.
