YZi Labs Files for Board Expansion at CEA Industries Amid BNB Treasury Dispute

TLDR

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YZi Labs has filed a revised preliminary consent statement with the SEC to expand the board at CEA Industries.
The expansion aims to place nominees who align with YZi Labs’ vision for the company’s future.
YZi Labs raised $500 million in a private placement to build the world’s largest corporate BNB treasury.
The company accused CEA Industries’ asset managers of attempting to shift from a BNB-only strategy to include other cryptocurrencies.
The fallout from the treasury dispute caused CEA Industries’ stock to drop by 87%.

YZi Labs has formally filed a revised preliminary consent statement with the SEC, aiming to expand the Board of Directors at CEA Industries Inc. The expansion seeks to add new members who align with YZi Labs’ vision for the company. This move follows mounting tensions over the company’s digital asset strategy, particularly its management of the BNB treasury.

YZi Labs Pushes for Board Expansion

YZi Labs is looking to place nominees in new positions on the CEA Industries board. This move comes after a series of disagreements regarding the company’s asset management. The group has made it clear that its goal is to influence the direction of CEA Industries by installing directors who support their vision.

📢 BNC Shareholder Update

Thank you to all BNC shareholders for your continued proactive engagement.

Last Friday (Feb 13) we filed a revised preliminary consent with the SEC, which is under review.

⚠️ Note: Shareholders cannot vote or submit consents at this time.

Please…

— YZi Labs (@yzilabs) February 16, 2026

The push for expansion comes after a private placement raised $500 million for the company in July 2025. The capital was initially intended to build the world’s largest corporate BNB treasury. However, by the end of 2025, YZi Labs accused CEA Industries’ asset managers of trying to diversify away from a BNB-only strategy, which led to disputes within the company.

BNB Treasury Controversy Prompts Action

YZi Labs’ dispute with CEA Industries revolves around its BNB treasury management. The company had amassed over 515,000 BNB, worth $465 million in August 2025, to serve as its main reserve. However, tensions escalated in December 2025 when YZi Labs accused 10X Capital and BNC management of secretly adding other cryptocurrencies, such as Solana, into the strategy.

This shift away from a strict BNB-focused approach led to an 87% drop in CEA Industries’ stock from its post-announcement highs. The rift over the treasury strategy has now evolved into a power struggle, with YZi Labs pushing to control the company’s future by expanding the board.

SEC Review Delays Shareholder Vote

YZi Labs filed its revised preliminary consent statement with the SEC to initiate the board expansion. The filing is currently under review to ensure compliance with legal requirements for soliciting shareholder consents. Shareholders are unable to vote or submit consent forms until the SEC finishes its review process.

Once the SEC approves the filing, YZi Labs will distribute a white consent card to shareholders. This will allow shareholders to officially vote for or against the expansion of the board and the proposed new nominees.

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