SCHEDULE: Michael Bigger Group Discloses 5.88% Stake in Cheer Holding

Michael Bigger and affiliated entities have disclosed a combined 5.88% beneficial ownership stake in Cheer Holding, Inc.'s Class A Ordinary Shares.

Summary

• Michael Bigger, through Bigger Capital Fund L P and District 2 Capital Fund LP, along with their respective general partners and managing members, collectively hold a significant stake in Cheer Holding, Inc.
• As of February 11, 2026, Bigger Capital Fund L P and its general partner, Bigger Capital Fund GP, LLC, each beneficially own 137,670 Class A Ordinary Shares, representing 2.94% of the outstanding class.
• District 2 Capital Fund LP, along with its investment manager District 2 Capital LP, general partner District 2 GP LLC, and managing member District 2 Holdings LLC, each beneficially own 137,670 Class A Ordinary Shares, also representing 2.94% of the outstanding class.
• Michael Bigger, as the managing member of both Bigger Capital Fund GP, LLC and District 2 Holdings LLC, is deemed to beneficially own an aggregate of 275,340 Class A Ordinary Shares, which constitutes approximately 5.88% of the outstanding Class A Ordinary Shares.
• The reported percentages are based on 4,686,248 Class A Ordinary Shares issued and outstanding as of January 28, 2026, as reported in the Issuer's Form 6-K.
• The beneficial ownership amounts do not include 525,000 Class A Ordinary Shares for Bigger Capital and 525,000 Class A Ordinary Shares for District 2 CF, which are issuable upon exercise of Pre-Funded Warrants and subject to a 9.99% beneficial ownership limitation.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive development. The disclosure of a significant passive stake by an institutional investor group suggests a belief in the company's value, which can be a positive signal to the market.

Positives

• A significant beneficial ownership stake by an institutional investor group can signal confidence in the company's long-term prospects.
• The disclosure provides transparency regarding a notable investor's position in Cheer Holding, Inc.

Negatives

• The filing is a standard ownership disclosure and does not contain information on operational or financial performance, thus no inherent negatives are present within the scope of this document.

Risks

• The filing explicitly states that the securities were not acquired and are not held for the purpose of changing or influencing the control of the issuer, other than activities solely in connection with a nomination under Rule 14a-11, indicating a passive investment approach.

Future Outlook

The filing is a disclosure of beneficial ownership and does not contain any forward-looking statements or guidance from the company or the reporting persons regarding Cheer Holding, Inc.'s future performance.

Industry Context

StockSavvy.ai notes that a 5.88% stake by an investor group led by Michael Bigger represents a notable position in Cheer Holding, Inc. Such disclosures often attract attention from other institutional investors and can be interpreted as a vote of confidence in the company's valuation or strategic direction, particularly when the investment is stated to be passive.

Comparison to Industry Standards

• A 5.88% stake is considered a significant minority interest, typically triggering disclosure requirements under SEC rules for beneficial ownership.
• Compared to typical institutional holdings, this level of ownership is substantial enough to warrant attention, though it falls below the threshold for active investor engagement often seen with stakes exceeding 10% or 20%.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake may increase investor confidence and potentially influence trading activity.
• Company Management: Awareness of a substantial passive investor group may subtly influence strategic decisions, though the filing explicitly states no intent to influence control.

Key Dates

Recommendation

The disclosure of a 5.88% passive stake by an institutional investor group, while not indicating an activist position, suggests that sophisticated investors see value in Cheer Holding, Inc. This can be a positive signal, but without further operational or financial updates, a 'hold' recommendation is appropriate for existing investors, while potential investors might consider it a positive data point for further due diligence.

Keywords

Cheer Holding Inc, Class A Ordinary Shares, Beneficial Ownership, Schedule 13G, Institutional Investor, Michael Bigger, Bigger Capital Fund, District 2 Capital Fund, SEC Filing, Equity Stake