Vinco Ventures (NASDAQ:BBIG) stock soared over 30% in premarket trading today after the company announced that investors who own BBIG stock as of May 18 will receive shares of its Cryptyde subsidiary. BBIG stock has been very popular with retail investors for some time now.
Currently a unit of Vinco, Cryptyde mines cryptocurrency and boasts “Freescape Metaverse characters.” Looking forward, Vinco intends to spin off the unit, which is slated to become a separate publicly traded company. According to Vinco Ventures, Cryptyde shares will be “distributed to BBIG shareholders on or about May 27″ as a dividend. Cryptyde’s products are also expected to launch by the third quarter.
Many retail investors have become very bullish on crypto mining and the metaverse. Vinco’s other subsidiary, Lomotif, has also made some investors enamored with BBIG stock. Some punidts have called Lomotif “the next TikTok.”
For Q4 2021, Vinco’s revenue from continuing operations fell 1.5% year-over-year (YOY) to $2.23 million. However, the company also reported cash and cash equivalents of $87.61 million as of the end of 2021. That was up from just $250,000 in the prior year.
As of this writing, BBIG stock is up more than 25% so far this year. However, the shares have also retreated 4% in the last three months.
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On the date of publication, Larry Ramer 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.
