Move aims to replace CEA’s leadership amid declining shareholder value and underperforming crypto holdings
Changpeng Zhao’s YZi Labs is attempting to reshape the board of CEA Industries, a company that pivoted to managing BNB digital assets but has seen its shares fall sharply. In a recent regulatory filing, YZi called on shareholders to support its nominees and reverse bylaw changes made since July, citing a need to halt the “continued destruction of stockholder value.”
Board Shakeup Proposal
YZi Labs intends to expand CEA’s board and install its own directors, a step that would effectively place control of the world’s largest publicly listed BNB treasury company under Zhao’s influence. The filing criticized the current management for slow investor communications and minimal marketing efforts, and questioned the dedication of CEO David Namdar, suggesting a review of leadership may be necessary.
CEA’s stock has tumbled about 89% since its July peak, closing Monday at $6.47, amid YZi’s board bid. The company currently holds over 515,000 BNB at an average cost of $851, giving it a market NAV ratio of 0.79x.
While BNB token itself is trading near a three-month low of $829, it has outperformed CEA shares year-to-date, up roughly 17.8% despite broader market volatility. Analysts note that YZi’s intervention could realign management with the token’s performance, but the outcome remains uncertain given shareholder sentiment and ongoing market pressures.
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