Shay Capital's Vision for Enhancing Beyond Inc. Value
Shay Capital's Vision for Enhancing Beyond Inc. Value
Dear Mr. Lemonis and Board Members,
As dedicated shareholders of Beyond, Inc. (NASDAQ: BYON), we would like to express our admiration for the significant efforts you've put into the turnaround of the company's core operations. The strides made in revitalizing the brands within Bed Bath & Beyond and Overstock are commendable, reflecting strong leadership that has inspired confidence among investors. However, we have serious concerns regarding the monetization of the Medici Ventures portfolio.
Unlocking Value in Blockchain Assets
It's crucial that we address the untapped value embedded in our direct stakes in tZero and GrainChain. Over the past decade, Beyond's shareholders have invested substantial amounts into these ventures, exceeding $400 million, yet these assets are undervalued on our balance sheet. We believe we are at a pivotal moment where swift action is essential to unlock this value, which could yield meaningful returns for long-standing shareholders.
Actionable Steps for Immediate Implementation
To ensure that these opportunities are not missed, we advocate for a set of pragmatic steps:
1. Create a GrainChain Special Purpose Vehicle (SPV)
We propose the formation of an SPV to transfer Beyond's direct ownership in GrainChain. This SPV’s shares should be distributed as dividends to all shareholders, subsequently listed on the NYSE under a ticker such as 'BYONS.' This would not only increase transparency regarding GrainChain's value but also provide shareholders with direct benefits from its success.
2. Issue a Contingent Value Right (CVR)
Implementing a CVR, linked to the monetization of the Medici Ventures portfolio and excluding tZero and GrainChain, is vital. This instrument, ideally trading on the NYSE under the ticker 'BYONR,' would deliver immediate value and establish a clear pathway for realizing returns.
Immediate Commitment to Action
We strongly urge the Board to set record dates for these distributions in the immediate future, signifying their commitment to decisive action. Additionally, we should explore a possible IPO or SPAC merger for tZero, as this could generate significant capital to utilize in Beyond's growth strategy. Embracing this potential would enable further acquisitions of valuable businesses and intellectual property while avoiding dilutive financing.
It's important to acknowledge that tZero can stand out among blockchain companies, achieving a substantial public valuation. However, it is imperative to execute this go-public transaction with precision to maximize shareholder value.
Our Expectations Moving Forward
We recognize the excellent progress Beyond has made in its core operations and are supportive of the visionary direction being pursued. Nonetheless, the delay in monetizing the Medici portfolio has dragged on too long. Given the significant commitments shareholders have made, continued inaction cannot be tolerated.
We plan to hold the Board, Pelion Ventures management, and the board of tZero accountable for delivering the expected outcomes. Consequently, we expect a detailed response regarding the plans to address these proposals within ten business days. Our goal is to engage constructively to ensure these actions align with the best interests of all shareholders.
Sincerely,
Eric Ebert
Shay Capital
280 Park Ave, NY, NY 10017
Frequently Asked Questions
What should Beyond Inc. do with its Medici Ventures portfolio?
Beyond Inc. should expedite the monetization of its blockchain investments, specifically tZero and GrainChain, to unlock value for shareholders.
How can the proposed SPV benefit shareholders?
The SPV can create transparency regarding GrainChain’s value while allowing shareholders to benefit directly from its success.
Why is issuing a CVR important?
A CVR would provide immediate value to shareholders, allowing for a structured approach to realize returns on investments in the Medici portfolio.
How long should shareholders wait for a response?
The expectation is for a detailed response within ten business days regarding the proposals put forth.
What is the potential impact of a tZero IPO?
A successful IPO for tZero could generate substantial capital to fuel Beyond's growth strategy and enable further acquisitions.
About The Author
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