BNB News Today: YZi Labs Challenges BNC's Governance as 0.79x NAV Discount Exposes Management Failures

YZi Labs, the investment vehicle of Binance founder Changpeng "CZ" Zhao, has launched a campaign to overhaul the board of CEA Industries (BNC), a publicly traded BNB treasury firm, following a 92% plunge in its stock price since its July peak. The firm filed a consent statement with the U.S. Securities and Exchange Commission (SEC) seeking shareholder approval for four proposals, including expanding the board, electing YZi Labs' nominees, and repealing bylaw changes made since July [according to reports](https://decrypt.co/350495/changpeng-zhao-yzi-labs-seek-shakeup-bnb-treasury-firm-stock-craters). The move underscores growing frustration over BNC's underperformance despite the appreciation of its primary asset, BNB, which [hit an all-time high of $1,369 in October](https://www.tradingview.com/news/cointelegraph:8e13758a5094b:0-cz-s-yzi-labs-moves-to-take-over-board-of-flatlining-bnb-treasury/) but has since fallen to $829.

YZi Labs, which holds 5% of BNC's shares and contributed to a $500 million private investment in public equity (PIPE) deal earlier this summer, argues that the current board lacks the expertise to address operational and governance issues. The filing [criticizes CEO David Namdar and other executives](https://decrypt.co/350495/changpeng-zhao-yzi-labs-seek-shakeup-bnb-treasury-firm-stock-craters) for insufficient investor updates, minimal marketing efforts, and alleged conflicts of interest, including promoting other digital asset treasuries while managing BNC. The company's shares, which surged to $82.88 in July after rebranding from a vape manufacturer to a BNB-focused treasury, now trade at $6.47, [creating a 0.79x discount to its market net asset value](https://www.tradingview.com/news/cointelegraph:8e13758a5094b:0-cz-s-yzi-labs-moves-to-take-over-board-of-flatlining-bnb-treasury/).

The SEC filing highlights systemic failures, including delayed regulatory disclosures and opaque communication about BNC's crypto reserves. YZi Labs contends that these shortcomings have eroded investor confidence and exacerbated the stock's decline. The firm's proposals aim to install directors with "strong track records" to oversee management and align the company's performance with its underlying BNB holdings [according to analysis](https://www.bitdegree.org/crypto/news/yzi-labs-seeks-new-board-after-bncs-500-million-surge). The consent solicitation includes a white card for shareholders to express support, denial, or abstention, with YZi Labs emphasizing the urgency of action to "prevent further destruction of shareholder value" [according to filings](https://equity-insider.com/2025/12/02/changpeng-zhao-yzi-labs-seek-shakeup-at-bnb-treasury-firm-after-stock-craters).

BNC's struggles reflect broader challenges in the digital asset treasury (DAT) sector, where companies like BNC seek to bridge traditional finance and crypto markets. While BNB's price has rebounded 17.8% year-to-date, the stock's performance lags, raising questions about the viability of DATs as institutional vehicles. [Analysts note that DATs' success often hinges on cash-flow generation](https://www.tradingview.com/news/cointelegraph:8e13758a5094b:0-cz-s-yzi-labs-moves-to-take-over-board-of-flatlining-bnb-treasury/) and regulatory clarity, factors that remain uncertain amid macroeconomic pressures and SEC scrutiny of crypto-related ETFs.

The outcome of YZi Labs' campaign could reshape BNC's governance structure and set a precedent for shareholder activism in the DAT space. If approved, the proposed changes would grant YZi Labs significant influence over the board, potentially altering the company's strategic direction. However, CEA Industries has not yet responded to requests for comment, and the identities of YZi Labs' nominees remain undisclosed [according to reports](https://decrypt.co/350495/changpeng-zhao-yzi-labs-seek-shakeup-bnb-treasury-firm-stock-craters). The situation underscores the volatile interplay between crypto markets and traditional equities, as institutional investors navigate the complexities of tokenized assets and corporate governance.