BBIG Stock Alert: The Cryptyde Spinoff News Sending Vinco Ventures Soaring Today

Shares of Vinco Ventures (NASDAQ:BBIG) stock are up 18% today on news that the company is making progress on its planned Cryptyde spinoff.

Concept art of gold tokens that read "NFT."
Source: Shutterstock

A filing with the U.S. Securities and Exchange Commission (SEC) shows that Vinco Ventures is proceeding with its spinoff of Cryptyde, and that Cryptyde will focus its efforts on Bitcoin (CCC:BTC-USD) mining and Web 3.0 as well as non-fungible tokens (NFTs). Investors had been eagerly awaiting news on the planned spinoff, which they see as helping to strengthen Vinco Ventures’ balance sheet.

What Happened With BBIG Stock

Vinco Ventures filed an amendment to its Form 10 with the SEC, which investors see as substantial progress on the Cryptyde spinoff. Although key facts such as the record date are blacked out in the filing, the Form 10 shows that things are moving forward with Cryptyde. Essentially a holding company, Fairpoint, New York-based Vinco Ventures is focused on acquiring fast-growing digital businesses.

Beyond the Cryptyde spinoff, investors have also been excited about Vinco Ventures’ video-sharing site Lomotif, which is viewed as a potential competitor of social media site TikTok. The spinoff of Cryptyde is seen as a potential boon for Vinco Ventures, raising cash for new acquisitions and unlocking value for shareholders.

Why It Matters

BBIG stock is a long-running meme stock and retail traders have tried several times to execute a short squeeze on the shares. Last September, Vinco Ventures stock jumped to $12.49 from $2.50 in only a few days when the most recent short squeeze was executed. It appears that an attempted short squeeze is again what’s happening to the stock.

Currently, 22.6% of the float in BBIG stock has been sold short, and Vinco Ventures is generating chatter on social media platforms. Despite its repeated runs, Vinco Ventures stock is down 21% over the past year.

What’s Next for Vinco Ventures

Vinco Ventures has been here before. And while there is legitimate interest in the company spinning off its NFT unit, as well as some of its other digital businesses, it appears that the stock is popping today as retail traders attempt yet another short squeeze on it. This means investors should proceed with caution. Any gains achieved today could be short-lived and BBIG stock could soon be back down to its 52-week low of $1.95.

On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/01/bbig-stock-alert-the-cryptyde-spinoff-news-sending-vinco-ventures-soaring-today/.

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