BNB treasury company dumps its crypto manager after Nasdaq suspends its stock, leaving no one in charge of its treasury
The settlement changes nearly 2 million warrants while filings name no successor CIO or asset manager.
Quick Take
- BNB Plus will pay $1 million and issue 200,000 preferred shares to end its Cypress agreements.
- Nearly 2 million warrants will be rescinded or modified under the settlement.
- The company has not named a successor CIO or asset manager after Nasdaq suspended BNBX.
BNB Plus, formerly known as Applied DNA Sciences, now pairs a BNB treasury strategy with its LineaRx biotechnology business. The company agreed to pay $1 million in cash and issue 200,000 preferred shares to end its relationships with Cypress, which had held discretionary authority over company-designated crypto accounts and wallets.
The July 23 deal followed Nasdaq's suspension of BNBX trading, and subsequent filings name no replacement for departed chief investment officer Patrick Horsman.
The settlement ended a digital-asset management agreement with Cypress LLC, a strategic-adviser agreement with Cypress Management LLC and an October 2025 consulting agreement with Horsman, according to a July 29 filing.
BNB Plus agreed to pay $500,000 when the agreements ended and another $500,000 in 12 equal monthly installments. It will also issue the Cypress parties 200,000 Series B-1 preferred shares across 12 installments. A qualifying payment default can trigger a $1.25 million fee, reduced by the monthly cash installments already paid.
The stock component is not equivalent to another cash payment. The Series B-1 terms set an initial liquidation preference and conversion price of $1.05 per share, an 8% annual dividend and a liquidation formula tied to accumulated preference and unpaid dividends. Those contractual terms do not establish a realizable market value for the settlement shares.
Cypress also accepted a standstill through Sept. 29, 2030. The deal calls for 695,322 Series E-1 advisory warrants to be rescinded and another 1,291,312 warrants to be modified, covering nearly 2 million warrants in total.
Who now makes the company's day-to-day BNB investment decisions remains undisclosed. Horsman ceased serving as CIO on July 23, while chairman and director Joshua Kruger will resign effective Friday, July 31. BNB Plus said Kruger's departure was not caused by a disagreement, and its filing named neither a successor CIO nor a replacement asset manager.
Cypress's discretionary management mandate has ended. Separately, the Series B-1 certificate gives holders of a majority of the preferred shares consent rights over specified material treasury transfers, custody-related liens and treasury-subsidiary actions, subject to an exception for defined ordinary-course custody or staking liens.
The Nasdaq Stock Market suspended BNBX at the open on July 14 after a Hearings Panel decided to delist the shares for failing the $1 minimum-bid requirement. BNB Plus said it planned to seek Listing Council review, which would not stay the suspension, and that Form 25 would follow only after appeal periods elapsed. The company's investor-relations page displayed OTCQB (BNBX) on July 30.
In its March 31 quarterly report, BNB Plus reported 2,186 BNB held through subsidiaries, a receivable for the equivalent of 6,077 BNB after those tokens were transferred to Hex Trust under arrangements allowing rehypothecation, and 435,638 OBNB trust units. The July 29 filing did not update those quantities or provide a complete current custody map.
BNB is +3.66% over the past 24 hours and currently sits at rank #4 by market cap.
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