If you want to buy BNB, it's better to buy BNC What is BNC BNB Standard Corporation is the largest DAT treasury company that hoards BNB tokens. The company was previously called CEA Industries and completed its name change on September 29th, while the US stock ticker BNC remains unchanged. fundamentals The company currently holds 515544 BNBs worth $375.5 million; BNC's stock price is $4.67, with a diluted total share capital of 52853688 and a market value of $246.7 million. Calculated mNAV ≈ 0.6569, with a discount (negative premium) rate of -34.31% YZi Labs, representing @ CZ_Sinance and @ HeyiBinance, holds 19.99% of the company's common stock and is the largest single shareholder. If the unexercised portion of YZi Labs is included, the proportion will be even higher. CZ is listed as a joint declarant and signatory in the SEC documents. Why is there a negative premium and progress in addressing it Corporate governance issue: The control dispute between YZi Labs and the original board of directors was resolved on June 23rd. There are currently 6 members on the board of directors, with 3 seats on each side, and a joint selection of the seventh independent director (subject to YZi Labs' approval). Overall, the situation is improving. Yesterday, a new announcement was made that @ odagius, a former partner of YZi Labs, has officially taken on the role of CEO and resigned from his position at YZi Labs (with the determination of All in), representing CZ and Yijie to work diligently on BNC. The company has begun to explore operating income: it plans to establish a self operated verification node on the BNB Chain, obtain profits by holding BNB, and attempt to transform from simply hoarding coins to a DAT company with operating cash flow; The compensation incentives for the new CEO are related to indicators such as BNB growth per share and operating income. High management fee issue: BNC previously requested that 10X Capital reduce its 1.75% management fee to 0.50%, but negotiations failed. Later, the company sued 10X, requesting the revocation of the agreement, which is still in progress. I hope BNC will gradually address these issues after organizing its internal team. The process of solving the problem may be the process of mNAV rising. My personal opinion on the reasons for buying BNC In the future bull market, Binance faces the competitive threat of Hyperliquid and needs to pull the market and pay attention; The penetration rate of BNB within the cryptocurrency circle is already very high, and more potential incremental funds are in the US stock market. MSTR and BMNR have both experienced bull market dividends before, while BNC has not yet experienced them. Taking a step back, even if Binance's subjective pulling force is weak, BNC's mNAV<1 has been going on for some time now. As long as we believe that BNB's fundamentals are present and will not be absent from future bull markets, once the market forms a joint force to bring mNAV back to around 1, BNC will still outperform BNB's returns. The current BNC is a bit like the former GBTC, with a discount of up to -48% in 2022, and buyers at that time significantly outperformed BTC. As mentioned above, corporate governance issues are gradually being resolved and improved. YZi Labs represents the home office of CZ+Sister, and their increasing control over the company is a sign that they need to take it seriously. There are two risk points One is as mentioned above, BNC's asset management agreement involves high long-term management fees, and the interests of the management and ordinary shareholders may not necessarily be aligned, which needs to be resolved; Secondly, if the company continues to issue new ATM shares when mNAV<1, even if all the funds raised are used to purchase BNB, it will dilute the net asset value per share and BNB exposure per share. Summary: BNC is an opportunity to buy BNB exposure at a discount of approximately 34%, while betting on improved corporate governance and valuation repair.