Shares of CEA Industries Inc. (VAPE) surged nearly 550% on Monday after it announced a major shift toward becoming a BNB treasury company.
The stock closed at $57.59, up from $8.88 on Friday, marking its highest close in more than three years. After-hours trading showed a 7% drop to $53.61.
The company revealed plans to transform into the largest publicly traded BNB treasury firm in the United States.
Its strategy involves a $500 million private share sale, alongside an additional $750 million from exercised warrants. Together, this could unlock $1.25 billion to acquire BNB.
CEA Industries is working with 10X Capital and YZi Labs. Earlier this month, YZi Labs described itself as linked to Binance co-founder Changpeng Zhao’s family office and confirmed its backing of 10X Capital in creating a BNB-focused treasury company.
BNB Purchases Could Reach $1.25 Billion
The deal is expected to close on Thursday, providing up to $1.25 billion to fund BNB acquisitions.
CEA said it aims to create “a gateway for institutional and retail investors to participate in the BNB Chain ecosystem.”
Incoming CEO David Namdar, a senior partner at 10X Capital and co-founder of Galaxy Digital, said:
“By creating a U.S.-listed treasury vehicle, we are opening the door for traditional investors to participate in a transparent way.”
Namdar added that BNB Chain remains “one of the most widely used blockchain ecosystems globally,” yet institutional access had been limited.
The company intends to build its BNB holdings over the next two years using “at-the-market offerings” and other structured strategies. It will also earn yield through staking and lending.
Several firms have taken similar approaches this year, shifting their models to accumulate cryptocurrency.
These pivots have often led to sharp stock movements and impacted the tokens targeted for acquisition.
BNB Holdings and Zhao’s Role in the Ecosystem
In February, Changpeng Zhao disclosed that 98.5% of his crypto portfolio consisted of BNB. While he did not share the total value, Forbes reported in June 2024 that Zhao and Binance collectively controlled 71% of circulating BNB tokens.
Although Binance launched BNB and the BNB Chain in 2017, it no longer manages the token or its blockchain development directly.
However, BNB holders still receive benefits on the exchange, linking the token closely to Binance’s ecosystem.
Zhao is barred from managing Binance after pleading guilty to money laundering violations but remains its largest shareholder. His ties to BNB continue to attract market attention.
Leadership Changes Led by 10X Capital
CEA Industries confirmed that executives from 10X Capital will take over its senior roles.
David Namdar will become CEO, while Russell Read, 10X Capital’s chief investment officer, will assume the same position at CEA.
Former Kraken product management director Saad Naja will join the management team. CEA also highlighted its expansion into Canada’s vape market in June with its acquisition of Fat Panda, a retailer and manufacturer.
Meanwhile, BNB slipped 1.8% in the last 24 hours, trading below $830 after briefly hitting an all-time high above $858 on Monday, according to CoinGecko.
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