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Vape company CEA Industries and venture capital firm 10X Capital, supported by YZi Labs (formerly Binance Labs), have announced a $500 million private placement aimed at establishing the largest publicly listed Binance Coin (BNB) treasury company.
New BNB Treasury Strategy
The offering comprises a common equity Private Investment in Public Equity (PIPE), which will generate $500 million in gross proceeds—$400 million in cash and $100 million in cryptocurrency.
According to Monday’s announcement, the funds raised will be primarily directed toward developing a crypto treasury strategy focused on the BNB Chain.
Leading the new BNB treasury strategy will be incoming CEO David Namdar, a co-founder of Galaxy Digital and a senior partner at 10X Capital, alongside incoming Chief Investment Officer Russell Read. On the matter, Namdar noted:
BNB Chain is one of the most widely utilized blockchain ecosystems, yet access for institutional investors has been limited until now. By establishing a US-listed treasury vehicle, we’re opening doors for traditional investors to participate transparently.
Russell Read echoed Namdar’s view, emphasizing what he sees as the fundamental strength of Binance Coin as a digital asset:
Institutional-grade exposure to BNB is appealing because it is driven by real utility across various sectors, including decentralized finance (DeFi) and enterprise applications. By creating this treasury vehicle, we allow institutions to engage in the growth narrative of BNB.
10X Capital, which has a history of advising significant players in the crypto space, will act as the asset manager for the BNB treasury strategy with the backing of YZi Labs. The transaction is expected to close around July 31, 2025, at which point the company will begin deploying funds to acquire BNB tokens.
CEA Industries Stock Soars 560%
The company’s plans after the closing include building an initial position in BNB, with aspirations to scale its holdings significantly over the next 12 to 24 months through a “sophisticated capital markets program.”
Additionally, they will reportedly explore staking, lending, and other opportunities within the Binance ecosystem to generate revenue while maintaining a conservative risk profile.
Ella Zhang, Head of YZi Labs, expressed confidence in the potential of a publicly listed Binance Coin treasury vehicle:
We recognized the institutional potential from the outset, and with the PIPE announcement, our conviction has been validated. We are excited to see this vision materialize, enhancing BNB’s utility and institutional access in a sustainable manner.
The market response to the announcement has been significantly positive for the company, with CEA Industries’ stock (VAPE) surging more than 560% on Monday morning following the revelation of the PIPE deal.
As of this writing, BNB is trading at $825, which is a 3% gap between the current price and the all-time high of $863 achieved earlier on Monday.
Featured image from DALL-E, chart from TradingView.com
