BBIG Stock Changing the Tides with Cryptyde

Since last year, Vinco Ventures Inc. (NASDAQ: BBIG) stock has been a particular favorite among retail ‘meme stock’ investors. As the company is transitioning into the lucrative digital media and AI sectors, BBIG stock could be a smart long-term investment. While BBIG stock remains affected by the ongoing court case, the stock could be well-positioned to run this week thanks to Finman’s recent interviews this weekend. With Finman sharing news regarding the case and Lomotif, investors are bullish BBIG stock could be poised for a rebound in the near future.

BBIG Stock News

Since 2021, BBIG has been an attractive investment for many given its continuous ventures into lucrative markets including NFTs and social media. While investors remain excited about the potential behind each of these projects, they are most bullish on BBIG’s Cryptyde Inc. spinoff. The spin-off would position Cryptyde as a stand-alone, Nasdaq-listed company trading under the ticker: TYDE.

Cryptyde

As a selective acquisitions company, Cryptyde is designed to focus on leveraging disruptive blockchain technology in a variety of ways. The company’s operations will include three business lines: Web3 products, Bitcoin mining services, and consumer packaging operated by Ferguson Containers. On the Web3 side of things, Cryptyde will acquire and build brands using blockchain technology to disrupt consumer-facing industries. 

E-NFT.com

So far the company has already achieved this with E-NFT.com and Emmersive Entertainment (EVNT). Currently it’s a platform for artists and content owners to distribute their IP through its proprietary streaming process. This makes it more affordable in terms of mining fees but EVNT itself makes money through the development of this digital artwork and music sold as NFTs through a third-party marketplace.

The team works with artists, celebrities, and sports stars to create collectibles featuring digital signatures, audio, and movement, with both physical and digital ways to view and interact with them.

The platform has already had some success since its co-founder – Tory Lanez – sold out his platinum album as an NFT within a minute on the site. It also has attracted the attention of Flo Rida who is a co-founder and strategic adviser for Emmersive Entertainment.

Web3

In addition to music, Cryptyde is looking for opportunities to move towards movies, gaming, digital art, ticketing and event services in the future.  This is likely connected to BlockHiro, LLC which is expected to become a Web3 Business using decentralized blockchain technology in established consumer facing industries. As is, Cryptyde still plans on minting its own coin to use across these various projects.

Bitcoin Mining

As for its Bitcoin mining services, Cryptyde’s joint venture CW Machines has already launched its crypto mining equipment reselling business and welcomed its initial customers in Q1. In short, CW Machines is a reseller of Bitcoin mining equipment and services – particularly equipment such as Antminer S19s, Antminer S19 Pros, Whatsminer, and Canaan. It also includes reselling co-location services which offer a physical location and ancillary services from third-parties for Bitcoin mining.

Freescape

According to its investor deck, Cryptyde will also be venturing into AR and VR with Volmax and pairing that with Ocuverse and/or Freescape. Cryptyde’s Freescape Metaverse characters have already been developed and are expected to be launched in Q2 2022 and Q3 2022.

Freescape is a character driven virtual ecosystem comprised of themed interactive environments. Users will be able to explore activities like concerts, movies, and more in the metaverse. With its “Space Cowboys” characters already developed, the Metaverse could attract a lot of attention given its unique avatars, five in-game worlds, and storyline tied to a six-figure cash prize.

The website states that there will be only one winner who guesses the mystery plot twist which is likely tied to the game’s storyline. Built around a world where automation has induced such large scale joblessness that legislation was passed by the US government “to provide a simulated life and persona for all of the US population”, Freescape promises to have clues spread throughout Freescape and its partner’s platforms.

Ferguson Containers

Underlying all of this is Ferguson containers which manufactures and sells custom packaging for products. Ferguson is an important piece of the spinoff since it will provide the initial revenue stream for Cryptyde. It’s already well established having been in operation since 1958 and sells its products to pharmaceutical, industrial, food and beverage, and e-commerce distribution industries.

According to Cryptyde’s second amendment to its registration statement – which included the 2021 financial report of Ferguson Containers – Cryptyde could be well positioned to explore its different ventures thanks to Ferguson. As is, the financial report highlighted significant growth for the subsidiary which reported almost $8 million in revenues. Considering that it is already producing revenue, Cryptyde could be in a strong position following its spin-off.

Cryptyde Spinoff

With many investors anticipating Cryptyde’s spin-off, BBIG stock received a major boost after the company announced a share dividend of Cryptyde for BBIG shareholders as of May 18th. Based on this dividend, holders of 10 BBIG shares will receive 1 share of Cryptyde with the dividend expected to be distributed around May 27th. BBIG’s management updated shareholders that investors who hold BBIG shares through May 27th will also receive one share of the new company for every 10 shares of Vinco Ventures.

After announcing its intention to spin off Cryptyde, BBIG also announced that Cryptyde has entered into definitive agreements to raise $42 million. According to this agreement, Cryptyde will sell $33 million worth of convertible notes to an investor for $10 per share and will sell an additional 1.5 million shares to another investor for $8 per share.

Cryptyde’s CEO Brian McFadden was thrilled about both agreements and believes “the capital will allow the company, after its expected spin-off, to scale its business model at an expedited pace without sacrificing shareholder value”. 

TYDE Stock Price

Many BBIG shareholders have speculated about the starting TYDE stock price and now investors appear to have some insight based on a securities purchase agreement which Cryptyde entered into. This agreement was for the sale of a senior convertible note worth $33.3 million.

According to the terms of this agreement, the note holder is able to purchase up to 3.3 million shares at a conversion price of $10. Given that Cryptyde issues these shares to the noteholder, many investors are bullish TYDE stock price could be $10. Based on this, some BBIG shareholders are speculating that the upcoming share dividend will yield the equivalent of a $1 profit per each BBIG share. If that is the case, BBIG shareholders could see significant benefit from the TYDE stock dividend.

BBIG Stock Merger

As for BBIG itself, the company’s investments in Blockchain and NFTs all started when Vinco Ventures announced a reverse triangular merger with Zash Global Media to form a joint venture entity.

Lomotif

At the time the company’s “crown jewel” was expected to be Lomotif – a short-form video platform – which is often referred to as one of Tiktok’s closest competitors. The two companies combined were valued at $5 billion since the platform had established itself globally with more than 300 million videos viewed per month in over 300 languages.

Today, BBIG is actively promoting the application in the US as well as in India where TikTok is banned. Given that India is the fifth largest economy and the second largest population in the world, Lomotif is well-positioned to capitalize on this major market. 

Lomotif’s platform actively encourages its users to share their videos on other platforms like TikTok, Twitch, Instagram, and Twitter. But BBIG is focused on developing Lomotif with influencer marketing and attracting new users through live streaming events like music festivals.

Last March, BBIG successfully attracted 7.2 million users and generated 16 million visitors to Lomotif media sites at the Okeechobee Music and Arts Festival. Based on this, Lomotif became one of the top 50 downloaded social apps in the Apple Store at the time.

However, this was made possibly because of AdRizer – one of BBIG’s most important assets. In this way, 86% of the traffic came from AdRizer’s promotion of the festival on YouTube. This highlights how BBIG uses the synergies between its different assets to promote one another.

AdRizer

In February, BBIG completed its acquisition of AdRizer – a technology solutions provider that uses AI for digital advertising – for $38 million and up to 10 million shares issuable on January 1, 2024. 

From the start, BBIG considered AdRizer a tool for promoting its other brands which led CEO Lisa King to comment that “we are now focused on deploying AdRizer’s technology platform to monetize the content creation and streaming capabilities of the Lomotif short form video app through digital advertising”.

AdRizer works through its core platform – Cortex – to provide analytics for marketing spend, revenue optimization, and ad campaigns in real-time. It integrates with Google, MSN, Instagram, Facebook, Twitter, and more to gather data on different metrics.

For this reason, AdRizer’s audience is mainly advertisers, advertising agencies, publishers and the like. It generates revenue through traffic acquisition of digital advertising spaces and by developing marketing campaigns and strategies through Cortex. Its appeal is that the platform can work easily with small- to medium-sized enterprises to help them control their marketing and branding campaigns in real-time. 

If BBIG is successful, AdRizer will help it not only monetize Lomotif but its other entertainment platforms as well. The most obvious connection is between AdRizer and Lomotif because as Lomotif’s audience grows and worldwide engagement increases, AdRizer’s analytics and advertising will be able to leverage it hand in hand with the app. 

But this also ties into BBIG’s Honey Badger Media subsidiary as well. This digital commerce company is essentially a way of building brands for influencers. Honey Badger engages with their existing audiences and expands them with targeted marketing, management, and strategies. 

As is, Honey Badger generates 1.5 billion video views a month and 10 billion video views each year. In this way, it leverages the millions of followers in its network to grow advertiser-based revenue through its digital marketing services for brands and influencers.

Given the synergies between these different platforms, BBIG’s decision to spinoff Cryptyde will allow it to focus on utilizing AdRizer to its fullest capabilities.  Already the company’ revenue has quadrupled from the year ago quarter, largely due to its acquisition of AdRizer. This helped increase the company’s revenue 349.7% from the first quarter of 2021 to $11.5 million in Q1 of 2022.

Institutional Ownership

In light of AdRizer’s potential. its not surprising to see more institutions taking notice of BBIG’s long-term potential. Currently, institutions hold 24.3 million shares of BBIG’s 174 million float. Institutions have been increasing their investments since December but in May many new institutions have opened long positions on BBIG. Some of the company’s largest shareholders are Group One Trading, L.p., Bluefin Capital Management, Llc, Susquehanna International Group, Llp, Vanguard Group Inc, Jane Street Group, Llc, and Susquehanna International Group.

On the 17th, Jane Street Group purchased 5.2 million shares worth of calls – the equivalents of more than $10 million – which reflects the growing bullish sentiment for BBIG stock.

BBIG Stock Institutional Ownership

*Updated August 3rd

Management

Looking to accelerate its merger with Zash Global Media, BBIG appointed Zash’s co-founder and chairman Ted Farnsworth as co-CEO alongside King. Through his role with Zash, Farnsworth played a pivotal role in closing the acquisitions of Lomotif and AdRizer by BBIG and ZVV. A respectable veteran in the media industry , Farnsworth has built several successful companies thanks to his experience in strategic development, marketing, public relations, and consumer behavior. Based on this, Farnsworth’s appointment could add value to BBIG as it looks to continue growing Lomotif and AdRizer. By adding Farnsworth as a co-CEO, BBIG and Zash could now work in tandem to execute the company’s growth strategy. In light of this, the closing of the much anticipated merger with Zash could be on the horizon.

Although this appointment could be promising for BBIG stock’s future prospects, the company has been making headlines lately for all the wrong reasons. Recently, the company shared PR announcing the termination of both King and Farnworth along other directors for attempting a “hostile takeover” of the company. However, the PR stated that BBIG’s board appointed Coluccin and Farnsworth as co-CEOs – with King appointed as president of ZVV. In light of this PR, BBIG stock dropped to a an all-time low due to the negative impact of the news on the company’s plans and operations. 

However, Farnsworth assured investors that this PR was unauthorized and contained false statements made by Colucci. At the same time, Farnsworth accused Colucci and the other independent directors of delaying the closing of BBIG’s merger with Zash. Despite the ongoing internal issues within the company, BBIG stock could be a low risk investment considering that the stock is bottomed-out. 

On a more positive note, BBIG stock has been gaining increased interest from investors recently after Zash appointed Erik Finman as its CEO. As the youngest bitcoin millionaire, Finman is a successful entrepreneur and investor. In light of his success, Finman was featured in Forbes, CNBC, and VentureBeat. At age 15, Finman dropped out of high school and moved to San Francisco to start an education startup providing an alternative to the educational system – Botangle – which he eventually sold for 300 bitcoin. Meanwhile, Finman launched a satellite into space to complete a crypto space drop to a school in Ghana. Later known as the Zash satellite, this satellite was then used to drop the world’s NFT space with Snoop Dogg and Grimes at EDC Las Vegas 2022.

Considering his status as a prominent crypto expert, Finman will be responsible for expanding crypto and NFT initiatives for Zash in addition to its multimedia ecosystem. With Zash looking to expand into the web3 space, BBIG stock could be a profitable long-term hold as the company works to finalize its merger with Zash. Since both companies combined were given a third party valuation of $5 billion, BBIG stock could be one to buy as the stock is at its bottom. 

With this in mind, many investors are bullish on BBIG’s potential after the appointment of Finman as he is active with shareholders on Twitter and Reddit. On that note, Finman is scheduled for an interview on Discord this week which will be streamed to YouTube where he will answer shareholders’ questions. Based on this, investors are anticipating Finman to share positive news regarding the company and the much anticipated merger.

*Updated August 17th

Trading Resume

After being halted for almost 2 weeks due to NASDAQ’s “request for additional information”, BBIG stock resumed trading yesterday and surged by as much as 100%. This surge has been mainly driven by the ongoing lawsuit filed against Farnsworth, King, and other directors for their alleged hostile takeover attempt of the company. With this in mind, many investors are increasingly bullish Farnsworth and King could be reinstated due to shady actions by Colucci and other independent directors. These actions included laying off 80% of the company’s employees and defaulting their salaries for cost savings despite the company having $140 million in its bank accounts which was highlighted during yesterday’s hearing. With additional hearings planned for this week, investors are bullish BBIG stock could be set for a rebound if Farnsworth and King are reinstated.

New Social Platform

Meanwhile, it is worth noting that BBIG – under Colucci’s leadership – entered into an agreement with AI Pros to use its tools in developing a social media platform with the goal of becoming a TikTok competitor. In addition, this platform will be focused on the US and Canadian markets as opposed to Lomotif which mainly targets the ripe Indian market where TikTok is banned. At the same time, this platform will be integrated with AI Pros’ advertising platform which is a bearish sign considering that AdRizer has been successful in monetizing Lomotif. 

Based on this deal, it appears that Colucci is moving away from BBIG’s vision of developing Lomotif and monetizing it through AdRizer which could jeopardize the company’s anticipated merger with Zash. In light of this, reinstating King and Farnsworth could allow BBIG stock to further climb since their vision for BBIG’s future is more appealing to investors.

*Updated August 27th

Finman’s Interviews

While BBIG is unable to move forward with its merger with Zash due to the ongoing court case, Zash’s CEO Finman discussed some developments regarding Lomotif in interviews over the past weekend. As Finman believes a TikTok ban in the US is approaching, Zash has been working to further develop Lomotif to be able to attract TikTok’s user base upon this potential ban. To facilitate this, Zash is currently working with Lomotif to improve the platform’s algorithm. At the same time, Zash is working to promote Lomotif across social media platforms and is hiring a social media team to oversee this strategy. 

Meanwhile, Finman plans to capitalize on TikTok’s biggest weakness which is not compensating content creators properly. For this reason, Zash intends to offer content creators better compensation for their content to attract them to Lomotif. In light of these plans, Lomotif could be a major TikTok competitor in the US even if TikTok is not banned – which could be reflected on BBIG stock price when the merger is closed. For this reason, Finman is confident BBIG stock could be extremely undervalued at its current PPS.

On that note, Finman shared during his interviews that Zash’s merger with BBIG was imminent before the court case. With this in mind, Finman is bullish the merger could be closed shortly after the case is closed which he believes could be in the coming 60 days. In addition to these updates, Finman addressed the lack of communication from BBIG’s management and pledged to make King or Farnworth appear on an interview with shareholders to increase transparency with shareholders. With Finman’s transparency attracting more interest to the company, BBIG stock could be poised for major growth when the ongoing case is closed.

Management Structure

Considering BBIG’s ongoing case, the company added Ross Miller as a third co-CEO to work alongside King and Coluccin according to a court order from the State of Nevada. In this way, BBIG could move forward with its growth plans to provide value to its shareholders. With this in mind, many investors are bullish on Miller’s appointment thanks to his respectable background. In addition to getting elected as the youngest Secretary of State in America in 2006 until 2014, Miller served as CEO and president of BKB Global – a subsidiary of DirecTV. Moreover, Miller was a senior vice president and general counsel of Paragon Gaming. Through his experience and background, BBIG appears to be in a good position in anticipation of the court’s final ruling regarding the ongoing case.

NASDAQ Notice

As the company has not released its Q2 financials yet due to the ongoing case, BBIG received a notice from the NASDAQ that it is not in compliance with the NASDAQ’s listing requirements. As a result, BBIG has until October 17 to submit a plan to regain compliance with the NASDAQ requirements. If the company’s plan is accepted, BBIG could be granted until February 13, 2023 to file its late financials to regain compliance. With this in mind, BBIG is working to file its financials as soon as possible and intends to submit a plan of compliance in the near future. Since investors are speculating the Q2 financials could have record revenues thanks to AdRizer, BBIG stock could be poised to soar when the company successfully files its Q2 report.

BBIG Stock Options Flow

Currently short interest is estimated to be 16.7% of the float and utilization is 100%

Using unusual whale’s options flow, it shows that call volume was 81% but bullish premiums were 58%. There was less activity from big whales but one sold their put with an $11 thousand premium. Currently, the most popular option chain is for calls with a $3.50 strike price and an expiry of May 27th. This option has 12,341 in volume and 20,082 open interest.

BBIG Stock Financials

BBIG released its Q1 financials recently and reported solid progress in a number of key metrics. The company saw a $9 million increase in its revenues – a 349.7% increase from the quarter before. BBIG also reported cash, cash equivalents, and restricted cash of $210.8 million.

Meanwhile administrative expenses increased to $26.8 million compared to $11.7 million in Q1 2021. Total other income and expenses in Q1 2022 were a net expense $352.9 million compared to $51.5 million in Q1 of 2021.

In terms of assets, BBIG witnessed a 23% increase QoQ for a total of $500.6 million in assets. However, BBIG also increased its total liabilities from $271.4 million to $541.7 million as a result of a $429.1 million derivative liability. In total, BBIG reported a net loss of $372.9 million resulting from loss on issuance of warrants as well as change in fair value of warrant liability.

Convertible Debt

As the company is in need of liquidity to pursue more growth opportunities, BBIG sold 20 million Series A Warrants to an accredited investor which could be converted to 20 million shares for $9 per share. Since these warrants could have a major dilutive impact on the company’s shareholders, BBIG agreed with the note holders to adjust the purchase price. In this way, each Series A Warrant could be converted to 50% of BBIG stock. In light of this, BBIG is able to raise capital without having to dilute more shares. 

Media Sentiment

Do not miss out on Finman’s interviews with @TRUExDEMON, @Official_MrRic, and @Wall_St_Custo for updates regarding Lomotif and the court case.

Technical Analysis

BBIG stock chart

BBIG stock price is currently at $.9668 and has supports at .85, .76, and .67. The stock also shows resistance near 1, 1.1535, 1.3247, 1.7092, and 2.2022. Since running near $2 after resuming to trade, BBIG dropped 50% since then. However, BBIG could be on track for a rebound and break $1 soon thanks to Finman’s interviews over the weekend. With this in mind, BBIG is currently trading below its MAs which could be a bearish sign for the stock in the near future. Despite this, BBIG is gaining momentum in pre-market which could see the stock run past $1 if enough volume is there.

BBIG stock chart

Following the stock’s run near $2, accumulation has gone on a steep downward trend and the MACD is bearish, but could be approaching a crossover. The RSI climbed slightly from 37 to 45 indicating that BBIG has the potential to run in the near future. As the stock is witnessing an increasingly bullish sentiment thanks to Finman’s recent interviews, BBIG stock could be set to run past $1 this week.

BBIG Stock Forecast

In light of the company’s ventures into several lucrative markets, long-term investors may see a profitable return on their investment when BBIG finalizes its merger with Zash. With this in mind, this merger will allow BBIG to integrate AdRizer with Lomotif to monetize the TikTok competitor more efficiently. Considering the potential of these ventures, BBIG could emerge as a leader in the digital media sphere. With TikTok potentially getting banned in the US due to privacy breaches, Lomotif could become the leading short-form video content provider in the US in addition to its status in India. Based on this, BBIG stock could be well-positioned to bolster its financials once the merger with Zash is finalized. 

Meanwhile, investors are increasingly bullish on the appointment of Finman as Zash’s CEO thanks to his engagement with shareholders. On that note, Finman recently shared a number of updates during his recent interviews regarding the merger with BBIG and Lomotif. With Finman sharing that Zash is actively working to develop Lomotif and improve its algorithm, BBIG could be in a prime position to capitalize on a potential ban on TikTok upon the completion of the merger. With this in mind, Finman also shared that the merger with BBIG was imminent before the court case which has delayed the deal from materializing. As Finman expects the merger to be closed shortly after the conclusion of the case, BBIG stock could be a bargain at its current PPS given the value added by merging with Zash. With the stock witnessing increased interest following Finman’s interviews, BBIG stock could be one to watch this week.

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