- Staking produced about as many tokens as in Q2, but lower GRAM prices cut revenue.
- Operating income reached $4 million as expenses fell 39% from the previous quarter.
- The company staked more than 99% of its 235.1 million GRAM at quarter-end.
TON Strategy earned 9.4 million GRAM from staking in the third quarter, roughly matching its second-quarter rewards. Yet the Nasdaq-listed company reported a $24 million net loss for the three months ended September 30. A lower GRAM price affected both sides of its earnings report: newly earned tokens brought in less revenue, and tokens already in its treasury lost value.Â
Why TON Strategy earned less from the same staking rewards
TON Strategy records GRAM staking rewards at their dollar value when it earns them. Revenue fell from $15 million to $13.1 million, primarily because each token earned was worth less. At quarter-end, the company had staked 232.9 million of its 235.1 million GRAM. The gross annualized staking yield was about 16%.
The larger swing came from the treasury itself. TON Strategy recorded a $27.2 million unrealized loss on its holdings after an $82.8 million gain in the previous quarter. That loss reflected a change in the value of tokens the company held. It did not require a sale.
Lower costs lift operating income as Telegram tests its wallet
Operating expenses fell 39% to $8.4 million as the company spent less on advisers, staff and professional services. Those savings helped lift operating income from continuing operations to $4 million, up from $500,000. Gross margin held near 95% even as gross profit fell to $12.4 million.
TON Strategy also spent $5.7 million buying back about 1.8 million shares. It ended September with no debt and $25.3 million in cash and restricted cash, down from $29 million in June.
As a network validator, the company backed an upgrade supporting Telegram’s Gram Wallet, which began a limited rollout on August 31. The wallet lets users send GRAM to Telegram contacts. Under the new design, future wallet updates can take effect without users moving funds to new addresses.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
