Binance Coin ($BNB) Treasury Firm Windtree Therapeutics Sees Stock Collapse By Over 70% After Nasdaq Delisting Notice

Windtree Therapeutics, a biopharmaceutical company that just implemented a BNB treasury strategy, witnessed its stock plummet more than 70% to $0.44 on Wednesday after Nasdaq sent Windtree a delisting notification.

NASDAQ informed Windtree that it no longer complied with Nasdaq Listing Rule 5550(a)(2) to maintain a minimum bid price of $1.00 per share. 

Due to their recent plunge, Nasdaq announced it would commence a suspension of Windtree’s (WINT) stock trading starting Thursday. 

This delisting comes only one month after Windtree announced its crypto treasury strategy, and it raises questions about the validity of this recent strategy.

Stock Price Plunges Over 77% as Investors React

The delisting notice caused a huge selloff, with WINT shares falling 77.2% to $0.11 in regular trading on Wednesday. 

Further declines came in after-hours trading, which was off slightly more at 4.7%, based on Google Finance data. 

The data represents a devastating pullback from mid-July when Windtree spiked briefly after announcing its BNB treasury plan. 

That stock went on to spike more than 30% in the days following that announcement, and the fact that it has now collapsed 90% since its high on July 18 is a terrible comment on the uncertainty involved in mixing traditional biotech investments with speculative crypto strategies.

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BNB Treasury Strategy Brings Mixed Results

Windtree is one of a growing number of publicly listed firms, exploring cryptocurrency treasuries to diversify their asset base and attract investor interest.

The company announced on July 16 that it entered into a purchase agreement with Build and Build Corp for $60 million, with additional options of $140 million.

Also, on the 25th of July, UnoCrypto reported that they have plans for a separate $500 million equity line of credit and a $20 million stock-purchase agreement to increase the amount of BNB they hold.

However, Windtree explained that they have not provided the amount of BNB they own along with their long-term plans for the treasury.

Although some businesses adopting crypto treasuries have experienced an improved sentiment with their investors, Windtree’s experience shows that a rapid process of financial instability may also occur when weak market fundamentals are combined with crypto treasuries.

Company Promises Continued Transparency Amid Uncertainty

In a filing with the U.S. Securities and Exchange Commission (SEC), Windtree’s CEO Jed Latkin reassured stakeholders, saying that the company would continue to meet its reporting requirements in the event of a Nasdaq delisting. 

Latkin has noted that Windtree intends to keep its shareholders fully informed while it explores options to regain compliance. 

Other crypto-oriented companies like Argo Blockchain have been relisted on Nasdaq upon addressing compliance failures, thereby raising the prospect that Windtree could ultimately be relisted on Nasdaq

That said, until the company articulates both its treasury situation and broader financial strategy, uncertainty will likely continue to weigh heavily on investor sentiment.

BNB Hits New All-Time High as Broader Market Recovers

Unusually, Windtree’s struggles are in stark contrast to the performance of BNB, the token with which its treasury strategy is based. 

On Wednesday, BNB rose 3.12% to $860.91, with a market cap near $120 billion and a circulating supply of 140 million tokens. 

Earlier today, BNB had even touched an all-time high of $881.01, driven by a broader recovery of the crypto market from recent lows.

This is a tangible reminder of the disconnect between Windtree’s hastened collapse of their stock and the additional value of the asset it is now forced to be tied up with.

While the strength of BNB signals that confidence is growing among institutional and retail investors about BNB, Windtree’s inability to capitalize on this bullish momentum comes with caution.

It highlights the danger of opening up a high-stakes biopharmaceutical operation while mixing it with volatile crypto treasuries.

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