Vinco Ventures Stock News and Forecast: BBIG stock crashes 37% after Cryptyde spin-off

UPDATE: BBIG stock is crashing on Thursday. Only a day after Vinco Ventures finally separated from Cryptide, which was much awaited from shareholders, BBIG shares are down nearly 37% to $1.25. TYDE is trading down 65% at $2.20. It seems this meme stock – loved by retail, hated by institutions – is dead in the water.

Finally, after some delays, BBIG holders got their bonus spin-off shares in TYDE on Wednesday. The deal had been delayed. BBIG holders had to wait since late May to get their bonus 1-for-10 offer. 

BBIG Stock News: TYDE stock distributed to shareholders

Shareholders in BBIG on the record date of May 18 who held those shares had expected the distribution to occur on May 27. However, that distribution was delayed, and BBIG stock fell sharply. Now though the distribution has gone through and TYDE will soon begin trading on the Nasdaq. As of yet, we do not have the first day of trading. We would assume it is imminent, but as of yet the Nasdaq website has not updated to reflect this and shows it as common stock when issued. However, TYDE is already trending across social media. Cryptyde and Vinco Ventures will now be two distinct companies. Cryptyde (Nasdaq: TYDE) is comprised of three business areas: packaging, Bitcoin mining and Web 3. Web 3 is focused on using blockchain technology in the video game and music industry. 

We have previously been quite negative toward BBIG stock and again have highlighted some of its filings.

•  "As of December 31, 2021, Lomotif had not generated any significant revenues and is likely to continue to experience significant net losses for the foreseeable future."
• "A substantial number of shares of our common stock may be issued upon conversion of our outstanding convertible notes or exercise of our outstanding warrants, and such issuances and any other equity financing we may conduct may significantly dilute our stockholders."
•  "$33,000,000 will be due in July 2022, and the remaining $80,000,000 will be due in July 2023."
• "The warrants we issued in November and December 2021 contain certain provisions, which provide that we shall seek to obtain a stockholder approval to increase our authorized shares of common stock to at least 400,000,000."

We have even less information about Cryptyde, but clearly the Bitcoin mining space is a challenging environment currently. Reports that the cost of mining is exceeding the cost of Bitcoin have circulated with Bitcoin falling below $20,000. This is reportedly leading to some mining operations selling for below cost.

We also note the offering prospectus from June 22, so there is the potential for dilution. 

BBIG Stock Forecast: Has the TYDE gone out for BBIG?

Now that the spin-off has been distributed, BBIG stock is trading 21% lower in Thursday's premarket at $1.54 at the time of writing. We remain negative with each spike failing at lower and lower levels.

BBIG stock, daily