YZiLabs' Concerns and Actions
YZiLabs, a family office associated with Changpeng Zhao, has initiated an activist campaign with the objective of taking control of BNB Network. The firm cites concerns that the company's rollout has stalled and that investor communication has deteriorated. In a recently filed Schedule 14A, YZiLabs accused the current management of slow execution, providing insufficient investor updates, and experiencing delays in critical regulatory filings.
This initiative follows closely after YZiLabs and 10X Capital supported a $500 million PIPE transaction. This transaction led to the transformation of CEA Industries, a former nicotine-vape manufacturer, into BNB Network (ticker: BNC). BNB Network was established as a publicly listed entity intended to offer institutions long-term exposure to BNB. At the time of the transaction, leadership presented the plan as an endeavor to create the largest publicly traded BNB treasury in the United States. Following the PIPE, which comprised $400 million in cash and $10 million in cryptocurrency, BNB Network's stock experienced a significant surge, exceeding 600% in July. CEO David Namdar and former CalPERS CIO Russell Read, both appointed during the transaction, stated that the pivot was designed to establish a transparent institutional entry point into the Binance-linked ecosystem. However, YZiLabs now asserts that the rollout has deviated from its intended path.
YZiLabs' Specific Allegations
The Schedule 14A filing details several specific complaints from YZiLabs. The firm alleges that BNB Network has been slow or incomplete in its filings, has engaged in minimal investor-relations outreach, and has conducted almost no institution-facing marketing efforts. Furthermore, YZiLabs claims that Namdar has been promoting alternative digital-asset treasury ideas while BNB Network's rollout has remained stagnant.
YZiLabs is also questioning the influence of 10X Capital. The filing states that 10X Capital holds a dominant position on the board while simultaneously functioning as an asset manager connected to the project. The proposed actions outlined in the filing include expanding the board, reversing recent bylaw amendments, and appointing a new slate of directors through a written-consent process. If a majority of the outstanding shares approve these changes, control would transfer to Zhao's family office without the necessity of a shareholder meeting. This activist move marks a notable departure from the collaborative sentiment that characterized the PIPE transaction just a few months prior. What was initially presented as a high-profile BNB treasury vehicle is now embroiled in a governance dispute concerning momentum, communication, and strategic direction.
Market Context and Pressure on BNB Network
The current market backdrop is exerting considerable pressure on BNB Network. BNB is trading near a three-month low, hovering just above $800, according to price data. This decline is directly impacting BNB Network's treasury, which currently holds approximately 515,000 BNB. Valued at around $412 million, this represents an average cost of $851 per BNB.
BNB Network's shares experienced a decline of nearly 11% in early Monday trading, closing at $6.35. This drop has widened the discount between the share price and its reported net asset value (NAV) of $8.09 per share. Consequently, the stock's market NAV multiple has moved to approximately 0.8x. This valuation level typically attracts scrutiny, particularly when a company's core proposition is transparent asset exposure. For an entity designed to mirror BNB's value, the increasing disparity between the share price and the underlying treasury is now a critical concern. YZiLabs contends that management has not responded with sufficient speed to address investor concerns or provide clear reporting during this volatile period for the token.
Future Outlook for BNB Network
The path forward for BNB Network hinges on YZiLabs' ability to secure sufficient written consents. If successful, YZiLabs could potentially replace a significant portion of the board and assume control without convening a shareholder meeting. While such maneuvers are uncommon, they are legally permissible under the company's existing structure.
Should YZiLabs fall short of its consent threshold, a prolonged governance dispute may ensue. This scenario is particularly likely given the downward pressure on BNB prices and the watchful eye of institutional investors observing the widening discount. The Block has made attempts to contact David Namdar, BNB Network, and a YZiLabs representative for comment but has not yet received a response. The coming months will be crucial in determining whether BNB Network can stabilize its rollout or if control will indeed shift to YZiLabs, ushering in a new strategic direction for the publicly traded BNB treasury.

