Windtree Therapeutics, a biotech company that recently launched a BNB treasury strategy, saw its share price crash by 77 percent on Wednesday following notification of Nasdaq’s intent to delist the stock. According to an SEC filing, the company failed to maintain the minimum bid-price requirement of $1.00 per share under Nasdaq Listing Rule 5550(a)(2). As a result, Nasdaq plans to suspend trading of WINT shares on Thursday, triggering a sharp sell-off in the company’s secondary market listing.
On Wednesday, WINT shares closed at $0.11, down from a recent high of $1.21 set in mid-July, representing a staggering $112 million loss in market capitalization. The decline accelerated after hours, with the stock shedding an additional 4.7 percent in extended trading, according to Google Finance. The price had briefly spiked by 32.2 percent following the July 16 announcement of a $60 million BNB purchase agreement with Build and Build Corp, but that momentum quickly reversed under compliance pressures.
Windtree’s BNB treasury model, which involved acquiring Binance Coin to serve as a digital asset reserve, aimed to provide investors with exposure to BNB price movements without directly holding the token. The approach mirrored similar strategies by larger crypto-focused firms, but left the company vulnerable to traditional compliance risks inherent in public equities. In a statement to the SEC, CEO Jed Latkin assured shareholders that Windtree would continue fulfilling its reporting obligations despite the looming delisting.
The company’s financial filings also disclosed a subsequent $500 million equity line of credit and a $20 million follow-on agreement with Build and Build Corp to expand its BNB treasury holdings. However, details on the exact volume of BNB in Windtree’s reserve remain undisclosed, drawing scrutiny from analysts and investors alike. The freefall highlights the perils of blending corporate treasury innovation with stringent exchange listing requirements.
Despite the setback, the broader BNB ecosystem reacted positively elsewhere, as the token itself rose 5.6 percent on Wednesday to an all-time high of $876.26, per CoinGecko data. BNB’s performance stood out among major altcoins during a market bounce, even as Bitcoin and Ethereum traded modestly higher. Observers note that well-capitalized institutions and nation-state reserve initiatives may support BNB’s price trajectory, independent of Windtree’s corporate mishap.
Windtree has indicated plans to explore alternative listing venues and regulatory pathways, potentially appealing to Nasdaq or pursuing over-the-counter trading options. In the interim, the company emphasized that its cold wallet reserves remain secure and unaffected by the delisting action. As the crypto-treasury concept continues to evolve, market participants will closely watch Windtree’s response and the regulatory outlook for similar strategies in public corporate finance.
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