SCHEDULE: Funicular Funds Discloses 9.9% Stake in AtlasClear

Funicular Funds, LP, Cable Car Capital, LP, and Jacob Ma-Weaver have disclosed a combined 9.9% beneficial ownership stake in AtlasClear Holdings, Inc., primarily for passive investment purposes.

Summary

• Funicular Funds, LP, Cable Car Capital, LP, and Jacob Ma-Weaver collectively reported beneficial ownership of 12,669,232 shares of AtlasClear Holdings, Inc. Common Stock.
• This represents 9.9% of the company's outstanding Common Stock, based on 126,819,145 shares reported by AtlasClear on its Form 10-K filed September 29, 2025.
• The ownership includes 4,083,333 shares of Common Stock, a convertible promissory note, and warrants exercisable within 60 days, all subject to a 9.99% beneficial ownership limitation.
• The investment is for passive purposes, stating the securities were not acquired or held to change or influence control of the issuer, except for activities related to a nomination under Rule 14a-11.

Sentiment

Score: 7

Explanation: The disclosure of a significant 9.9% passive stake by Funicular Funds, LP and related entities is generally a positive signal, indicating investor confidence. The inclusion of convertible notes and warrants suggests a strategic investment, though the passive nature limits immediate impact.

Positives

• A significant institutional investor, Funicular Funds, LP, along with Cable Car Capital, LP and Jacob Ma-Weaver, has taken a substantial 9.9% stake in AtlasClear Holdings, Inc., potentially signaling confidence in the company's long-term prospects.
• The investment includes convertible notes and warrants, suggesting a structured approach to gaining exposure and potentially providing capital to the company.

Risks

• The beneficial ownership limitation of 9.99% on the convertible promissory note and warrants could restrict the reporting persons from increasing their direct voting power beyond this threshold, potentially limiting their influence.
• While stated as passive, any future shift in the investor's intent could lead to activist pressure, which might introduce volatility or strategic changes.

Industry Context

This filing indicates a significant investment by a fund in AtlasClear Holdings, Inc., a company operating in the financial services sector. Such large passive stakes are common for funds seeking exposure to specific industries or companies they believe are undervalued or have growth potential, without immediately seeking control.

Stakeholder Impact

• Shareholders: The disclosure of a large passive stake by institutional investors could be viewed positively, potentially increasing investor confidence and demand for the stock.
• Company Management: While the investment is passive, a significant shareholder could still engage with management on strategic matters over time.

Key Dates

Recommendation

The filing reveals a significant passive stake by Funicular Funds and related entities, which is generally a positive indicator of institutional confidence. However, as a Schedule 13G, it explicitly states a passive investment intent, meaning no immediate activist pressure or strategic changes are anticipated from this filing alone. The presence of convertible notes and warrants suggests a structured investment, but without further details on the company's performance or the terms of these instruments, a 'hold' recommendation is prudent. Investors should monitor future filings and company performance to assess the long-term implications of this substantial ownership.

Keywords

AtlasClear Holdings, Funicular Funds, Cable Car Capital, Jacob Ma-Weaver, beneficial ownership, Schedule 13G, common stock, convertible note, warrants, passive investment, financial services