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

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR

  • 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.

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.

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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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Crypto World

ProductionReady’s Jimmy Song Pitches Case for Conservative Bitcoin Software

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Decentralization, Nodes, Bitcoin Adoption

The Bitcoin (BTC) network needs a “conservative” Bitcoin client node software implementation to preserve its monetary properties and strengthen network decentralization, according to Jimmy Song, co-founder of ProductionReady, a non-profit organization funding open source Bitcoin node software development and education.

The organization has a “bias” against significant code changes, unless there is “overwhelming” community support for the change, Song told Cointelegraph.

“The general principle is: if you’re not sure a change makes the money better, don’t make it,” he said. 

Decentralization, Nodes, Bitcoin Adoption
The number of Bitcoin nodes, broken down by software implementation, between 2016 and 2026. Source: Coin Dance

ProductionReady expects to restore the 83-byte OP_Return data limit for arbitrary, non-monetary information in Bitcoin transactions, he said, adding that keeping node storage costs down by limiting arbitrary data is essential to network decentralization. He said:

“The more self-sovereign Bitcoin users are, the more decentralized and resilient the network becomes. That means keeping the cost of running a node low enough for ordinary people to do it. 

“When storage and bandwidth requirements grow, fewer people verify for themselves, and the network centralizes by default. A conservative client takes that tradeoff seriously,” Song continued.

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Maximizing nodes and making them accessible to the average user hardens the Bitcoin network, reducing the chances of cheating by submitting false transactions or a few actors colluding to centralize the network. 

Decentralization, Nodes, Bitcoin Adoption
Bitcoin Core continues to be the software of choice for node runners, with 77.8% of the network running some version of the Core software and 21.8% running Bitcoin Knots. Source: Coin Dance

Related: 72% of subsea cables would need to fail to impact Bitcoin, study shows

Bitcoin Core 30 removes the OP_Return data limit, sparking major pushback

Node storage and onchain spam became hot-button topics in 2025 after Bitcoin Core developers unilaterally changed the 83-Byte data limit in Bitcoin Core version 30, the latest major upgrade to the reference implementation for Bitcoin node software.

The limit was changed to 100,000 bytes despite significant pushback from the Bitcoin community. For context, the proposal to change the limit received about 4 times as many downvotes as it did upvotes, according to the proposal’s GitHub pull request page.

Bitcoin Core 30 went live in October 2025, triggering a historic surge in the number of Bitcoin nodes running Bitcoin Knots, an alternative implementation of the node client software.

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Decentralization, Nodes, Bitcoin Adoption
The number of nodes running Bitcoin Knots surged to record highs in 2025, following the release of Bitcoin Core 30. Source: Coin Dance

There are 4,746 Bitcoin Knots nodes, representing over 21.7% of nodes on the network, according to Coin Dance.

Only about 1% of the network was running the Knots software in 2024 before the decision to remove the OP_Return function was announced.

Magazine: Bitcoin may face hard fork over any attempt to freeze Satoshi’s coins