Vinco Ventures (NASDAQ:BBIG) has been in the news a lot recently. The company has made waves with its social media venture via the Lomotif app, which stands to challenge TikTok. It is leaning hard into non-fungible tokens (NFTs) as well, with an investment in projectable E-NFTs. Yet, the biggest piece of the puzzle that’s exciting BBIG stock holders right now is the coming crypto spinoff, Cryptyde. The incoming crypto acquisitions outfit will be launching on Wall Street under the TYDE ticker symbol. But how does it all work?
Investors are very excited by the idea of the Cryptyde spinoff because they want that increased exposure to a booming market while retaining their stakes in BBIG and its promising social media platform. But while autumn brought a lot of hype around the spinoff and its resulting dividend payment, there’s not much in the way of news. A quiet period has kept investors in the dark, but as that period comes to an end, there’s much chatter around the details of the spinoff.
BBIG stock is an investment for people who want exposure to a lot of different markets. Indeed, Vinco Ventures is tied to plenty of emerging digital technologies like NFTs and social media. But, with its newfound exposure to cryptocurrency, the company is deciding to grow a bit.
BBIG Stock Holders Look for Details Around TYDE Crypto Dividend Spinoff
Cryptocurrency is proving to be a highly lucrative investment area, and Vinco Ventures wants to dedicate crypto acquisitions to its own body. Thus, the incoming spinoff, Cryptyde. Cryptyde will be a separately traded entity from Vinco, allowing it its own dedicated board, stock and road map.
The announcement of the Cryptyde spinoff was made in September 2021. Anyone who holds BBIG prior to a designated record date will be eligible for the dividend spinoff payment. The announcement from November 2021 gives investors some key details they are looking for regarding TYDE stock.
A dividend spinoff sees a corporation divest its ownership interest as a stock dividend to holders. In this case, eligible holders will be anyone who owned BBIG prior to the announced record date. This announcement is also a key catalyst for shareholders, as it has been pushed back a few times. Investors have taken to social media to share they hope to have a new record date soon.
One this record date comes, Vinco will pay out the stock dividends to these holders. According to the press release, Vinco is distributing this dividend in a 1:10 ratio. This means that for every 10 shares of BBIG one owns, they will receive one share of TYDE stock. Vinco expects there to be 19 million shares of Cryptyde common stock after the spinoff. The company expects the dividend to be tax-free, and those receiving TYDE stock will not sacrifice their BBIG stock positions.
On the date of publication, Brenden Rearick 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.