Beat Holdings

The company adopts a dual-track strategy of "ETF increase + spot reserves" to layout in the cryptocurrency field, forming a closed loop of capital operations: "financing - increase - appreciation": Bitcoin ETF Investment: In May 2025, the investment limit for Bitcoin ETFs will be raised from $6.8 million to $34 million, with a total purchase of 131,230 shares of BlackRock's iShares Bitcoin Trust (IBIT) at an average purchase price of $49.49 per share, corresponding to a Bitcoin equivalent holding of approximately 1,980 coins. The funds mainly come from revolving credit lines, such as the withdrawal of $2.8 million from the credit line for ETF investment in May 2025. Spot Bitcoin reserves: The plan is to gradually convert ETF holdings into directly held Bitcoin to reduce intermediary fees and enhance asset control. As of July 2025, the conversion of 217 Bitcoin from ETF holdings has been completed, with the directly held amount accounting for 10% of the total reserves. Capital Market Financing: In June 2025, shareholder Atari Group proposed to raise funds by issuing 54 million warrants (MSW). If calculated at the historical highest price of 16,000 yen per share, it could raise 799.2 billion yen (approximately 5.3 billion USD) for increasing Bitcoin holdings, corresponding to about 53,227 Bitcoins. The company has initiated an evaluation of the financing plan and aims to complete the first tranche of 500 million USD financing in Q3 2025.

The profits related to cryptocurrency mainly rely on three major paths: Bitcoin Price Appreciation: From June to July 2025, the price of Bitcoin rose from $105,000 to $118,000, driving an increase in the company's unrealized gains of approximately $2.3 million (calculated based on 1,980 BTC equivalent). By disclosing position data weekly (such as changes in ETF holdings), it attracts institutional investors to follow suit, creating a price transmission effect. Financing leverage returns: Utilizing capital market financing to amplify Bitcoin reserves, such as the HKD 200 million revolving credit agreement signed with a lending institution in May 2025, allowing for flexible increases in Bitcoin holdings over the next 12 months. This model amplifies asset appreciation returns through leverage, with an investment return rate of 17.2% in Q2 2025, significantly higher than the industry average. Compliance arbitrage returns: As the first listed company on the Tokyo Stock Exchange focused on Bitcoin reserves, we utilize the regulatory differences between Japan and Hong Kong for cross-border arbitrage. For example, in July 2025, we increased our Bitcoin holdings through our Hong Kong subsidiary at a cost of $108,000 per coin, which is 4.3% lower than the average price in the Japanese market, saving approximately $850,000.

Institutional Entry Demonstration Effect: As a benchmark for traditional financial institutions transitioning into the cryptocurrency sector, its "financing - increasing holdings - appreciation" model has been emulated by European asset management companies. By Q3 2025, two German companies have announced the adoption of similar strategies. The transparency of regular disclosure of holding data by the company has promoted a 15% increase in the acceptance of Bitcoin in the compliant investment field. Capital efficiency optimization: By dynamically converting between ETF increases and spot reserves, the holding cost of Bitcoin is reduced. For example, in July 2025, the average cost of Bitcoin increased through ETFs was $108,000 per coin, which is 4.3% lower than the market average price during the same period, saving approximately $680,000. Compliance risk isolation: Separating cryptocurrency assets from traditional business, managing digital asset reserves through independent subsidiaries. In Q2 2025, the asset-liability ratio is only 7.8%, significantly lower than the industry average, avoiding the impact of cryptocurrency price fluctuations on the credit rating of the main business.

Bitcoin ( BTC ): Market supply and demand adjustment: As of July 2025, the Bitcoin directly and indirectly held by the company accounts for 0.0095% of the global circulation. Its accumulation behavior led to a 6% month-on-month increase in the overall mining difficulty of Bitcoin in June 2025, temporarily suppressing the earnings of small and medium-sized miners. Price expectation guidance: By disclosing position data weekly, long-term bullish signals are conveyed to the market. After the disclosure of its position in July 2025, the open interest in the Bitcoin futures market increased by 18%, reflecting institutional investors' optimistic expectations for short-term prices. Other cryptocurrencies: Currently, there is no public information indicating that the company holds Ethereum (ETH), Solana (SOL), or other cryptocurrencies. The business focus is entirely on the Bitcoin ecosystem.