CEA Industries, a small Canadian vape company listed on Nasdaq, stunned markets after its stock surged more than 833% in a single day. The rally followed its announcement to establish the largest public Binance Coin (BNB) treasury, with plans to raise up to $1.25 billion. (Business Insider)
$500M private placement
The company confirmed the closing of a $500 million PIPE (Private Investment in Public Equity) deal, consisting of $400 million in cash and $100 million in crypto, with the option to expand by another $750 million via warrants. As part of the strategy, the firm rebranded under the name BNB Network Company, with its Nasdaq ticker changing to BNC. (GlobeNewswire)
Largest corporate holder of BNB
Through its treasury program, the company acquired around 200,000 BNB, worth nearly $160 million, making it the largest corporate holder of Binance Coin. This move mirrors strategies like MicroStrategy’s Bitcoin accumulation, but with BNB as the primary asset. (CoinDesk)
Institutional and retail frenzy
The plan attracted more than 140 institutional investors, including 10X Capital and Pantera Capital, while retail enthusiasm exploded on platforms like Stocktwits, where mentions of CEA spiked over 12,000%. The stock’s meteoric rise turned the little-known vape firm into a meme-like phenomenon, bridging traditional equity markets with crypto speculation. (AInvest)
Risks ahead
While the BNB treasury model represents a new frontier in altcoin institutionalization, risks remain significant:
- Volatility of BNB could impact the balance sheet.
- Dependence on crypto adoption makes the firm vulnerable to regulatory shifts.
- The meme-like stock rally raises concerns about sustainability.
Still, the move underscores how corporate treasuries are expanding beyond Bitcoin and Ethereum, positioning BNB as a contender for long-term institutional portfolios.
Sources: Business Insider, GlobeNewswire, CoinDesk, AInvest
