BNB News Today: YZi Labs Challenges CEA Management Over Governance Failures, Stock Plunge

YZi Labs, the investment vehicle of Binance founder Changpeng Zhao, has launched a bid to take control of CEA Industries (BNC), the publicly traded BNB treasury company it helped fund, citing ongoing shareholder value destruction. In a regulatory filing, YZi Labs seeks to expand the board, repeal bylaw changes since July, and install its nominees as directors. If approved by a majority of shareholders, the move would effectively transfer control of the world's largest public BNB treasury to Zhao's group according to filings. The filing accuses current management of poor communication, delayed filings, and a lack of marketing efforts to promote the company as reported.

CEA Industries' shares have plummeted 89% since their July peak of $57.59, closing at $6.47 on Monday-a 10% single-day drop. The stock has fallen over 20% year-to-date, trading below its pre-crypto pivot price. The decline follows a $500 million private investment in public equity (PIPE) deal in August, which saw 10X Capital's David Namdar appointed as CEO and multiple executives from the firm join the board according to reports. YZi Labs now alleges that Namdar has shown "lack of devotion and loyalty" by promoting other crypto treasury projects and suggests the board consider replacing him as claimed.

BNB, the token underpinning CEA's treasury, has also underperformed. Trading at a three-month low of $829, it has lost nearly 40% since its October high of $1,367 but remains up 17.8% year-to-date as noted. CEA's holdings of 515,054 BNB, purchased at an average cost of $851.29, have pushed its market NAV ratio to 0.79x. Despite BNB's gains, CEA's stock has lagged, prompting YZi Labs to argue that the company's governance and operational strategy are misaligned with investor interests as stated.

The activist campaign marks a sharp turn for YZi Labs, which previously collaborated with 10X Capital to position CEA as a bridge for institutional exposure to the Binance ecosystem. The firm now claims management has failed to address investor concerns, including delayed regulatory filings and minimal media outreach as reported. A November 27 letter from YZi Labs emphasized the need for "experienced, competent directors" to oversee operations and restore investor confidence .

The outcome of the board reshuffle could reshape CEA's trajectory. If YZi secures majority support, it could replace directors without a shareholder vote. CEA's board has yet to respond publicly to the filing. Meanwhile, BNB's price volatility and broader crypto market pressures add urgency to the governance debate. With BNB's roadmap targeting performance upgrades and potential ETF approval, the treasury's future hinges on resolving leadership tensions and aligning with market expectations as suggested.