BNB Latest Updates: YZi Labs Confronts BNC's Board Regarding Mismanagement of BNB Treasury Governance

YZi Labs Initiates Board Overhaul at BNC Amid Plummeting Stock

YZi Labs, an investment group associated with Binance co-founder Changpeng "CZ" Zhao, has launched a campaign to reform the board of CEA Industries Inc. (NASDAQ: BNC). This publicly listed company is notable for managing one of the largest institutional BNB treasuries worldwide. The initiative comes after BNC's share price suffered a dramatic drop of over 92% from its July high, despite the company's significant BNB reserves.

In a preliminary Schedule 14A filing with the U.S. Securities and Exchange Commission, YZi Labs is seeking to expand the board, reverse recent bylaw amendments, and appoint new directors. The firm proposes bypassing a traditional shareholder meeting if a majority of outstanding shares agree to the changes.

The dispute escalated following BNC's $500 million private investment in public equity (PIPE) in August 2025, which supported its transition from a nicotine-vape producer to a digital asset treasury focused on BNB. After the announcement, BNC's stock soared by more than 600% in July 2025, but has since plunged to $6.47 as of November 2025, trading at just 0.8 times its reported net asset value of $8.09 per share. Holding a 5% stake in BNC, YZi Labs accuses the current board of neglecting key corporate responsibilities, failing to communicate with investors, and overlooking operational issues such as late filings and an unfinished investor relations website.

YZi Labs' filing also raises concerns about governance, highlighting potential conflicts of interest among company leaders. CEO David Namdar, director Hans Thomas, and former 10X Capital executive Russell Read—all affiliated with 10X Capital, which oversees BNC's treasury—are alleged to have promoted other crypto treasury projects while managing BNC. The investment firm further criticized the company’s inconsistent branding between "CEA Industries" and "BNB Network Company," as well as the absence of regular updates on BNB yield or accumulation.

In an open letter to shareholders, YZi Labs warned of ongoing "destruction of stockholder value" if changes are not made.

BNC currently holds about 515,000 BNB tokens, valued at $412 million at recent market prices, with an average acquisition cost of $851 per token. The company has set a goal to amass 1% of BNB’s total supply by the end of the year. However, BNB’s price has dropped to $820 from a peak of $1,369 in October, further widening BNC’s trading discount. YZi Labs contends that the board lacks the necessary expertise to manage the treasury effectively, especially as institutional interest in BNB continues to rise.

The outcome of YZi Labs’ consent solicitation could significantly alter BNC’s governance and its approach to managing BNB assets. If the campaign succeeds, YZi Labs would gain the authority to restructure the board without convening a shareholder meeting, potentially transforming the company’s BNB accumulation strategy and investor communications.

CEA Industries has yet to issue a public response to the filing, and the identities of YZi Labs’ proposed board nominees remain undisclosed.

This ongoing struggle highlights the broader challenges facing institutional crypto treasury management, as stakeholders balance effective governance with the unpredictability of the digital asset market. The resolution of this dispute could set a precedent for corporate oversight in the rapidly evolving world of digital asset holdings.