ZOOZ Strategy Ltd. Annual Shareholder Letter

Core Viewpoint - ZOOZ Strategy Ltd. has transformed from a kinetic energy storage company to a dual-listed entity on Nasdaq and TASE, adopting Bitcoin as its primary treasury reserve asset, reflecting a strategic shift in response to global economic changes [1][2]. Strategic Overview - The transition to a Bitcoin standard positions the company as a bridge between traditional capital markets and the emerging digital asset economy, aiming to maximize shareholder value [2]. - Management expresses strong conviction in Bitcoin as a premier store of value, viewing it as reliable collateral that is open, neutral, and censorship-resistant [3]. Market Dynamics - Recent market dynamics indicate a maturing asset class, with potential for broad institutional adoption and increasing scarcity of Bitcoin, suggesting a multi-decade growth story [4]. - The company believes that as global liquidity expands, Bitcoin will serve as both a hedge and a vehicle for asymmetric upside [4]. Strategic Pillars for 2026 - The company plans to execute a four-part strategy to enhance shareholder value: 1. Optimization of Legacy Operations: Reducing costs in the kinetic energy storage business to focus on Bitcoin treasury [7]. 2. Improved Transparency: Launching a Treasury Dashboard to provide clear insights into Bitcoin holdings and their value per share [7]. 3. Yield Generation: Identifying low-risk opportunities to earn yield from Bitcoin and cash positions without diluting shareholder value [7]. 4. Strategic Expansion: Exploring cash-flowing businesses within the Bitcoin ecosystem to enhance operating cash flow [7].