BNB News Today: BNB Rises as YZi Labs Battles to Reverse CEA's 92% Stock Plunge

Binance founder Changpeng Zhao's YZi Labs has launched a campaign to seize control of CEA Industries (BNC), a publicly traded company that holds a significant BNB treasury, amid allegations of poor management and declining shareholder value. In a regulatory filing, YZi Labs seeks to expand the board of directors, repeal recent bylaw changes, and install its own nominees, arguing that the current leadership has failed to address operational shortcomings and market underperformance. The move, if successful, would grant YZi Labs-formerly positioned as Zhao's family office-effective control of the company, which it helped fund through a $500 million private investment in public equity (PIPE) deal in August 2025.

CEA Industries, rebranded as BNB Network, has seen its stock plummet nearly 92% since its July peak of $82.88, trading at $6.47 as of Monday. The decline contrasts sharply with BNB's performance: while the token has fallen 40% from its October all-time high of $1,367 to $829, it remains up 17.8% year-to-date, outperforming BNC's shares according to analysis. YZi Labs attributes the stock's collapse to delayed investor updates, minimal marketing efforts, and the CEO's alleged promotion of competing digital asset treasuries. The filing specifically criticizes David Namdar, CEO and 10X Capital executive, for a lack of devotion and loyalty to CEA, citing his involvement in promoting other crypto treasury initiatives.

The conflict underscores broader tensions in the crypto market, where institutional-grade treasury strategies face scrutiny amid volatile asset prices. CEA's pivot to a BNB-focused model was initially hailed as a way to offer transparent exposure to the Binance ecosystem, but YZi Labs argues the execution has faltered. The company's market net asset value (mNAV) ratio has dropped to 0.79x, indicating a widening discount to its crypto holdings. Meanwhile, BNB's recent price action-trading near a three-month low-has intensified pressure on CEA's governance structure, with YZi Labs emphasizing the urgency of board changes to prevent further destruction of shareholder value.

YZi Labs' proposals require a majority of outstanding shares to pass, and the firm holds 5% of BNC's stock. If approved, the new board could initiate a leadership overhaul, including the potential replacement of Namdar. However, CEA Industries has yet to respond to the allegations or comment on the filing. The outcome of this corporate governance battle will likely influence investor confidence in BNB-based treasuries, a growing segment as institutions seek diversified crypto exposure according to market analysis.