Vinco Ventures (NASDAQ:BBIG) has two important catalysts coming before the end of May. The company has confirmed the distribution date for Cryptyde. After months of waiting, investors will finally receive shares of the long-awaited blockchain spinoff. While investors have known this news was coming for months, the distribution day has finally been set for May 27. BBIG stock is flying high today as momentum builds around the spinoff date.
What’s Happening With BBIG Stock
BBIG stock is trading at its highest point since January 2022, when short interest pushed it up significantly. After a week of remaining stagnant and a month of no growth, today shares are powering up. As of this writing, BBIG is in the green by 29% and looks poised to rise even higher.
As noted, the stock is up on two exciting catalysts. Vinco has set the record date for Cryptyde’s dividend distribution, but there are two important days to consider. Let’s take a closer look at what’s going on.
Why It Matters
Investors who hold BBIG stock as of market close on May 18 will receive one share of Cryptyde for every 10 BBIG shares in their portfolio. An important distinction, though, is that the actual shares will not be delivered to investors until May 27.
According to a statement released by the company,
“Following the separation, Vinco stockholders will also receive cash in lieu of any fractional shares of Cryptyde common stock that those holders would have received after application of the 10:1 distribution ratio. No action is required by Vinco stockholders in order to receive the shares of Cryptyde common stock in the dividend distribution.”
Following the official separation, Cryptyde will trade alongside BBIG stock on the Nasdaq under the symbol TYDE. Both ventures will function as independent, publicly traded companies.
The separation comes at an interesting time for both companies. While BBIG stock is up today, crypto prices are not. The recent market selloff has negatively affected investor confidence in crypto, pushing down Bitcoin (BTC-USD) and Ethereum (ETH-USD). This does not necessarily mean that Cryptyde will not perform well when it begins trading on its own. However, the bearish energy surrounding crypto markets does not inspire much confidence that its debut will go well.
What It Means
For investors still willing to believe in Vinco, this dividend means a free payout. Crypto prices aren’t working in Cryptyde’s favor right now. However, the company has plenty of potential to catch fire in the months ahead. Until investors see how it performs, the company can enjoy the benefit of the doubt.
However, this doesn’t mean that BBIG stock will stay in the green. Vinco has seen considerable controversy throughout the past year. It has enjoyed meme stock pushes but has never been able to sustain the type of momentum that drives long-term growth. The company’s recent earnings report didn’t do much to assure investors that the company is poised to grow in the coming quarter. Most of Vinco’s growth has been spurred by Cryptyde announcements, but it won’t be able to ride that wave much longer.
On the date of publication, Samuel O’Brient did not hold (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.
