In a filing with the Securities and Exchange Commission, YZi Labs argued the current board has underperformed and failed to act in shareholders’ best interests.
- YZi Labs functions as a family office of Binance founder Changpeng ‘CZ’ Zhao.
- YZi Labs owns around 5% of BNC.
- Analysts at 10x Research described the activism as a “net positive” for BNC’s share price.
Binance Coin (BNB) led gains among the top 10 cryptocurrencies in early morning trade on Tuesday after Changpeng ‘CZ’ Zhao-backed YZI Labs filed to overhaul the board at CEA Industries (BNC), the largest publicly traded BNB treasury in the U.S.
Analysts at 10x Research described the activism as a “net positive” for BNC’s share price, citing potential governance improvements and alignment with BNB’s performance.
BNB’s price rose 1.2% in the last 24 hours to over $836. On Stocktwits, retail sentiment around the altcoin dipped to ‘bullish’ from ‘extremely bullish’ over the last 24 hours, accompanied by chatter at ‘normal’ levels. In comparison, the overall crypto market traded flat. Bitcoin (BTC) edged 0.5% higher while Ethereum (ETH) edged 0.7% lower.
Meanwhile, BNC’s stock gained 3.8% in pre-market trade on Tuesday. On Stocktwits, retail sentiment around the company trended in ‘bullish’ territory, accompanied by ‘high’ levels of chatter.
Activist Push Could Reshape Governance
YZi Labs, which owns approximately 5% of BNC, is seeking shareholder support to restore bylaws to their July 2025 version, expand the board, and install its nominees to improve oversight and strategic direction. In a filing with the Securities and Exchange Commission (SEC), YZi argued the current board has underperformed and failed to act in shareholders’ best interests.
According to 10x Research, the boardroom fight presents two likely outcomes: either a YZi victory or a negotiated settlement. Both scenarios could strengthen governance, enhance oversight, and improve alignment with BNB’s performance, the report said.
History Of Board Tensions
BNC completed a $500 million private placement in July 2025 to support its BNB treasury strategy, facilitated in part by YZi Labs. Several board and CEO appointments followed, including directors nominated by strategic partner 10X Capital.
Since then, YZi said in its filing that it has repeatedly proposed governance improvements, fee adjustments, and enhanced transparency, many of which were not adopted.
It added that the recent board expansions, from five to six members with the appointment of Annemarie Tierney, have not fully satisfied YZi. The company said it will continue to push for structural changes and greater control over its strategic direction.
Risks And Opportunities
10x Research noted that activism can attract speculative investor flows, particularly in a CZ-backed treasury vehicle, and can accelerate reforms such as improved disclosure, better capital allocation, and a potential CEO review. However, potential risks include management distraction, legal or proxy costs, and amplified regulatory or market scrutiny.
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