$500 Million Binance PIPE Creates 'True Proxy' for Emerging Crypto
A significant private investment in public equity update from CEA Industries taps a relatively unheralded digital asset.
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"The trenches."
That’s the term altcoin and memecoin traders use to describe trading these highly volatile assets.
Wall Street has developed its own trenches in the crypto industry in the form of digital treasury companies. Recently, I dove deep into the Wall Street trenches by teaming up with a name you might remember from his days here at RealMoney, Tim Collins.
Our role involved analyzing and conducting due diligence on companies that were a potential fit for a digital treasury opportunity.
The one in particular: Binance.
If you haven’t seen the news yet, 10X Capital, along with YZi Labs, unveiled a $500 million private investment in public equity (PIPE) with a potential $750 million follow-up for a Binance digital treasury through CEA Industries VAPE.
Immediately, VAPE becomes the largest Binance digital treasury by a wide margin. While there have been other Binance treasuries announced, the big headline numbers are aspirational. In other words, the cash isn’t in the bank like it is with a funded PIPE. Those companies intend to sell equity in the future or are slowly drawing down on equity lines.
Binance is one of the largest cryptocurrency ecosystems in the world, but it is not widely discussed in the U.S. While traders and investors focus on Bitcoin, Ethereum and Solana, they are missing out on one of the strongest opportunities in the sector.
The Binance exchange is the top by volume, while the BNB Smart Chain stands tall in DeFi, dApps, NFTs, gaming and most aspects of blockchain technology.
It was built with a deflationary model, utilizing quarterly burns to reduce supply, offering significant price appreciation potential if demand remains static or increases.
Most importantly, the Binance token (BNB) is not easy to buy in the United States. You can’t hop onto Coinbase and pick it up. For major institutions, large hedge funds, family offices, and corporations, it’s even more difficult, which is what makes digital treasuries appealing.
VAPE becomes a true proxy.
It’s a simple-to-buy regulated security that provides direct exposure to BNB.
The structure and team remind me of what we’ve seen in Strategy MSTR, SharpLink Gaming SBET and Bitmine BMNR.
It was a driving factor behind my participation in the PIPE.
I foresee VAPE following a similar pattern of expanding its Binance Treasury at higher stock prices, which will continue to lower its mNAV after this big, initial push.
And like MSTR, SBET and BMNR, I believe it will have such a large lead on competing treasuries that it will remain the top-tier go-to name for Binance exposure.
At the time of publication, Byrne was Long VAPE
