#USA #New York #Beyond Inc #tZero #GrainChain

Shay Capital's Letter to Beyond Inc. Board

On July 23, 2025, Shay Capital LLC sent a significant letter addressed to Marcus Lemonis, CEO of Beyond, Inc., emphasizing the need for immediate action regarding the company's blockchain ventures.

Acknowledgment of Progress

Shay Capital, a substantial shareholder of Beyond, applauded the impressive turnaround achieved under Lemonis's leadership. This resurgence primarily focuses on revitalizing the core operations of Bed Bath Beyond and Overstock, where Beyond now stands poised for sustainable growth. Investors are optimistic and have regained their confidence in the brand.

Concerns Over Medici Ventures Portfolio

Despite these positive developments, Shay Capital expressed serious concerns about the lack of progress in monetizing the Medici Ventures portfolio, particularly in its direct stakes in tZero and GrainChain. Over the last decade, Beyond shareholders have invested more than $400 million into these ventures. However, the assets' current valuation on the company's balance sheet significantly undermines their actual potential value, raising alarms among long-term investors.

Urgency for Action

Shay Capital lauded the management's recent initiation of a monetization strategy for tZero and GrainChain, following productive discussions with investors. However, they stressed the need for immediate and decisive action to capitalize on these blockchain opportunities fully. With Beyond's direct ownership of tZero and GrainChain, the Board has the authority to unlock value without delays, and shareholders are now expecting prompt execution.

Proposed Action Steps

Shay Capital outlined several actionable steps for the Board:
1. GrainChain Special Purpose Vehicle (SPV): Suggesting the creation of a SPV to hold Beyond's direct ownership stake in GrainChain, they propose issuing shares of this new SPV as dividends to Beyond's shareholders. This would provide transparency into GrainChain's value and could allow shareholders to directly benefit.
2. Contingent Value Right (CVR): They recommend distributing a CVR to all shareholders tied to the Medici Ventures portfolio's monetization, which is aimed at establishing a clear mechanism for realizing returns from long-standing investments.

Shay Capital urges the Board to quickly set record dates for these distributions, emphasizing this as a demonstration of commitment to swift action.

The Path Ahead

Additionally, Shay Capital believes a successful tZero IPO or SPAC merger could supply substantial capital for Beyond's growth strategy, enabling further acquisitions without causing dilution. They assert that tZero is currently leading the blockchain sector regarding potential IPO valuations and maintaining momentum is essential for maximizing shareholder value.

Despite acknowledging the remarkable progress made at Beyond, Shay Capital finds the ongoing delay in monetizing the Medici portfolio unacceptable. Shareholders, after long waiting periods, increasingly demand returns on their investments, and further inaction could be indefensible.

In concluding their letter, Shay Capital expressed a resolute intention to hold the Board, management of Pelion Ventures, and the tZero board accountable for delivering results. They have requested a detailed response outlining plans to address these proposals within 10 business days, showing their commitment to constructive engagement aimed at ensuring shareholder interests.

In summary, the letter from Shay Capital represents a crucial moment in the relationship between Beyond, Inc. and its investors, pointing towards an urgent call for accountability and action to unlock shareholder value. The next steps taken by the Board will be closely monitored by shareholders and industry observers alike.