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 at its current PPS. Given that Cryptyde’s spin-off date has been set, BBIG stock has seen significant demand pre-market – leading to a 35% climb. With the company set to pay a share dividend of Cryptyde to shareholders as of May 18th, BBIG stock could soar during this timeframe.

BBIG Stock News

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

As a selective acquisitions company, Cryptyde is designed to focus on leveraging blockchain technology to disrupt consumer-facing industries. The company’s operations will include a streaming music NFT platform and a crypto mining ecosystem – which intends to leverage blockchain technologies to bring BTC mining to a price point for everyday consumers around the world. This launch could be a gateway for BBIG to capitalize on the lucrative crypto market.

While there is no news confirming the timeline for Cryptyde’s launch, investors are speculating an official announcement regarding the company-to-be is imminent. This anticipation is mostly fueled by the launch of the Cryptyde website and Fintel’s web page dedicated to tracking TYDE stock data ahead of its IPO. In addition, BBIG shareholders have also noticed multiple BOD members updating their Linkedin profiles to their new roles at the newly formed Cryptyde Inc – a sign that news of the company formation could be on the horizon.

*Updated March 21st

Cryptyde Spinoff

After announcing its intention to spin off Cryptyde, BBIG 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”. 

This comes after Cryptyde filed the second amendment to its registration statement – which included the 2021 financial report of Ferguson Containers. This financial report highlighted significant growth for the subsidiary which reported almost $8 million in revenues. Considering that its subsidiary is already producing significant revenue, many investors are bullish that BBIG stock price will receive a major boost from Cryptyde’s expected spin-off.

*Updated May 6th

Share Dividend

With many investors anticipating Cryptyde’s spin-off, BBIG stock received a major boost after the company announced a share dividend of Cryptyde for 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 by May 27th. Given the major potential of Cryptyde, investors have been buying BBIG stock to receive TYDE shares. With this in mind, BBIG stock could continue climbing until May 18th as more and more investors look to secure TYDE shares.

*Updated May 13th

TYDE Stock Price

With Cryptyde’s anticipated spin-off approaching, BBIG shareholders have speculated what might be the starting TYDE stock price. Investors appear to have some insight now based on , securities purchase agreement which Cryptyde entered into for the sale of a senior convertible note worth $33.3 million.

Pursuant 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 a major benefit in holding their BBIG stock in anticipation of the dividend.

Convertible Debt

As the company is in dire need for 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. 

BBIG Stock Merger

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 known as ZVV Media. To unleash the true potential of this joint venture, BBIG also closed the acquisition of 80% interest in Lomotif Private Limited. Lomotif – which offers a short-form video platform – is expected to be the “crown jewel” of BBIG’s media and entertainment company in conjunction with ZASH and Vinco Ventures. 

Now owned by the joint venture entity ZVV Media, Lomotif is increasingly referred to as one of Tiktok’s closest competitors. Valued at $5 billion, the platform has established itself globally with more than 300 million videos viewed per month in over 300 languages. In fact, BBIG is actively promoting the application in the US and India, where TikTok is banned, which gives the company a great opportunity to capitalize on the company’s large population.

Because of this presence, Snapchat has previously chosen to partner with Lomotif for bi-directional integration to facilitate the posting of stories between both platforms. In light of Lomotif’s high valuation, BBIG stock saw its market cap increase from 320 million to 557 million, and bullish investors are predicting a price target near $20 based on the merger alone.

EVNT Spinoff

Shareholders are also holding out for the spinoff of BBIG’s subsidiary – EVNT Platform, LLC. dba Emmersive Entertainment –  a global supplier of bitcoin mining equipment and services. Chief Strategy Officer Brian McFadden believes this spin-off will be “the icing on the cake to the overall merger with ZASH.” Said to be on the verge of disrupting the NFT market, EVNT aims to market E-NFTs – which are “cutting edge 3-dimensional full-scale NFTs” with original artwork featuring famous musicians, athletes, actors, and performers. Using augmented and virtual reality, these E-NFTs could be used in a variety of ways to produce the “future of memorabilia”. 

According to Farnsworth, the company is not looking to raise funds at this time with roughly 80 million “in the bank” after an initial investment of $200 million – half of which went to the Lomotif acquisition. Farnsworth continued to assure investors that the company has no intentions of exercising the warrants worth roughly $170-180 million – which means dilution is unlikely to occur.

*Updated March 21st

AdRizer

Looking to continue venturing into the tech industry, 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. 

Through this acquisition, BBIG will benefit from AdRizer’s platform – Cortex – which provides advertisers with analytics to assist in creating ad-campaigns and improving the returns on these ads. Following this, the platform integrates these ads with a number of partners like Google, Twitter, and Instagram. 

BBIG plans to use this technology inside the Lomotif app to enable advertisers to engage with Lomotif’s users. BBIG also intends to integrate its subsidiary Honey Badger – a content monetization platform – with AdRizer and Lomotif to oversee brand messaging and designing digital campaigns.

Excited about the closing of this deal, CEO Lisa King commented “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”.

BBIG Stock Financials

Looking at BBIG’s financials, the company’s acquisitions led to a significant increase in assets from $28 million in 2020 to $405 million. However, liabilities increased as well to $271.4 million compared to $14.5 million. This increase in liabilities is mainly the result of BBIG reporting $198.5 million as derivative liability. Despite this growth in assets, BBIG’s revenues saw a 20% decline to $9.7 million after reporting $12 million in the previous year while operating expenses jumped to $82.6 million. In this way, BBIG had a net loss of $713.1 million compared to $5.1 million net loss for 2020. 

Although these financials are underwhelming to many investors, this could be due to the company transitioning into a new industry. With this in mind, BBIG could report better financials in 2022 as it continues developing its TikTok competitor Lomotif.

Media Sentiment

@GorillaTrading helps break down what shorting a stock through the ex-dividend date means

@ChaseMacTrades is excited for the potential TYDE stock price to be $10.

Technical Analysis

BBIG stock is currently trading at $2.62 and shows a main support at 2.47 as well as a secondary support at 2.20. Meanwhile, the stock shows a main resistance at 2.69 in addition to a secondary resistance at 2.85. Following BBIG stock’s recent 34% run to $3.36, accumulation has been on a downward trend and the RSI cooled off from 81 to 45. However, the MACD is bullish but could be approaching a crossover.

Considering the bullish sentiment surrounding TYDE stock, bullish investors could find a good entry point before the ex-dividend date on the 18th. Given that the RSI dropped to 45, BBIG stock could be set for a retest of its resistance as the RSI regulates. However, bullish investors may find a better entry point near the 2.20 support if BBIG stock dips again.

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 as BBIG fulfills its acquisitions and continues to develop Lomotif. With Cryptyde’s spin-off date set, BBIG stock could see new highs as investors try to secure shares of TYDE stock following the spinoff. Since each holder of 10 BBIG shares will receive 1 TYDE share as of May 18th, BBIG stock could continue to run in the lead up. In the long-run, BBIG shows notable potential as it explores synergies between its acquisition of AdRizer, HoneyBadger and Lomotif.

If you have questions about BBIG stock and where it could be heading next feel free to reach out to us in our free alerts room!

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