Beat Holdings Cancels Unexercised Stock Rights Amid Bitcoin Market Weakness

Beat Holdings Limited has taken steps to adjust its funding framework in response to Bitcoin's market weakness. The company, listed on the TSE Standard Market, has adopted a Bitcoin-centric treasury strategy, investing in BTC and the iShares Bitcoin Trust to boost Bitcoin holdings per share. However, the decline in Bitcoin's value in early 2026 weighed heavily on Beat's share price, keeping it below the JPY42.5 floor exercise price for its stock acquisition rights.

To address this issue, the board has resolved to buy back and cancel all 43.7 million unexercised stock acquisition rights issued in December 2025. This decision is part of a shareholder proposal tied to a third-party allotment involving a debt-equity swap and moving-strike warrants, which would also extend Beat's revolving credit facility.

By unwinding out-of-the-money warrants that were originally intended to support large-scale BTC-related investments, Beat is acknowledging the constraints imposed by its depressed share price. The move underscores the direct influence of Bitcoin's volatility on the company's capital structure and signals a tactical shift toward more flexible funding arrangements.