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BNC Board Battle: Investor Revolt Over Plunging Shares
2 Dec, 2025
Summary
- YZi Labs initiates consent solicitation to overhaul BNC's board.
- BNC shares plummeted 89% from July peak, despite significant BNB holdings.
- YZi Labs cites governance failures and lack of timely disclosures.
A significant governance dispute is unfolding at CEA Industries (BNC) as Changpeng Zhao's YZi Labs seeks to replace the company's board. YZi Labs has filed a sweeping consent solicitation with the SEC, aiming to restructure leadership and repeal recent bylaw changes. This action comes after BNC's stock price collapsed by 89% from its July peak.
YZi Labs, which owns approximately 5% of BNC's shares, asserts that the current board has neglected timely disclosures and effective investor communication. The firm contends that shareholders are owed a functional board and warns that inaction will lead to continued erosion of shareholder value, especially given the company's significant holdings in BNB.
The dispute has escalated following BNC's $500 million PIPE financing in August, which shifted the company's focus to a BNB-denominated treasury strategy. Despite an initial surge in stock price, the value has since drastically fallen, trading below its reported net asset value.
