TONX

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was primarily driven by the Gram treasury's productivity, which benefited from an April network upgrade that increased validation frequency and staking rewards. Management simplified the corporate structure by largely completing the wind-down of legacy VERB operations, terminating vendor agreements and reducing personnel to focus exclusively on the TON ecosystem. The rebranding of Toncoin to Gram (GRAM) was executed to restore the original identity envisaged in Telegram's white paper and distinguish the network from its native currency. Technical upgrades, including Catchain 2.0, reduced block times to 400 milliseconds and transaction fees sixfold, addressing critical hurdles for consumer payments and high-frequency AI agent applications. The company terminated its advisory agreement with Kingsway Capital Partners after halting payments in March 2026, marking a final step in resolving historical legacy arrangements. Management views Telegram's global distribution as a unique engine that makes TON particularly well-suited for making asset ownership and economic activity native to the internet. The 'Own, Advance, and Compound' framework will guide future capital allocation, prioritizing Gram per share growth over absolute treasury size. Management is evaluating five capital alternatives: purchasing more Gram, continuing staking, repurchasing TONX shares, retaining USD liquidity, and selective ecosystem investments. Future strategic investments will target payments, AI agents, and market infrastructure that can support Gram utility and long-term treasury value. Guidance assumes that current high staking yields may not continue indefinitely as the network matures and validator participation evolves. The company expects to leverage its position as the largest non-Telegram Gram holder to potentially partner on infrastructure that reduces friction for institutional investors. Recognized a $5.5 million non-cash charge related to the accelerated vesting of legacy RSUs following the resolution of a historical equity plan issue. Recorded a $2.9 million non-cash write-off of the remaining prepaid asset associated with the terminated Kingsway advisory agreement. The wind-down of legacy operations is expected to remove $4 million to $5 million in annual operating costs, with full run-rate savings visible by Q4 2026. Management highlighted the risk of USD liquidity management, as revenues are generated in Gram while operating obligations remain denominated in U.S. dollars. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Most cost savings will be visible in Q4, though limited legal and administrative obligations will persist into 2027. The primary benefit of the wind-down is organizational focus, allowing the team to dedicate all resources to the core TON strategy. Management monitors utility metrics like mini-app usage and creator monetization rather than just investment holding. Improved market structure, including exchange availability and custodial support, is viewed as a critical area where the company can impact Gram's long-term value. Management does not assume current staking economics will continue indefinitely and takes a conservative planning approach as yields naturally evolve with network maturity. The long-term investment case is built on network adoption and real economic activity rather than just staking yields. The company is not currently offering this service but considers it a representative example of the 'Advance' pillar for future evaluation. Any move into service offerings would require a sustainable competitive advantage and attractive risk-adjusted returns.

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 9:00 a.m. ET Chief Executive Officer - Kevin Wilson Chief Financial Officer and Chief Operating Officer - Sarah Olsen Operator: Good morning, and welcome to TON Strategy Company's Second Quarter 2026 Earnings Conference Call. Joining us today are Chief Executive Officer, Kevin Wilson; and Chief Financial Officer and Chief Operating Officer, Sarah Olsen. Earlier today, the company filed its quarterly report on Form 10-Q for the quarter ended June 30, 2026, and issued a press release with its financial results. Both are available in the Investor section of the company's website. An accompanying presentation was posted to the Investor section of the company's website before today's call and will be referenced during management's prepared remarks. The press release, quarterly report, presentation, and webcast replay of today's call will be available on the company's website. Following management's prepared remarks, the company will address selected questions submitted in advance by shareholders. Before we begin, I would like to remind everyone that today's call includes forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and are subject to risks and uncertainties that could cause actual results to differ materially from those described in forward-looking statements. Please refer to the company's filings with the Securities and Exchange Commission, including its annual report on Form 10-K for the year ended December 31, 2025, and its quarterly report on Form 10-Q for the quarter ended June 30, 2026, for discussion of these risks and uncertainties. The company undertakes no obligation to update any forward-looking statements except as required by law. Today's remarks may also refer to non-GAAP financial measures and supplemental measures that are not defined under GAAP. Any required reconciliations and explanations of these measures are included in the earnings release. With that, I'd like to turn the call over to TON Strategy Company's CEO, Kevin Wilson. Please go ahead. Kevin Wilson: Thank you, operator, and good morning, everyone. For today's call, I'll begin with an overview of our Q2 operating progress and recent developments across TON. Sarah will then review our financial results and staking performance. I will come back on to discuss our capital allocation framework, our priorities for the second half, and the longer-term opportunity we see developing around TON and Telegram. The second quarter demonstrated the productivity of our Gram treasury at current scale, while we also made important progress in simplifying the rest of the business around that treasury and the TON ecosystem. We ended June with approximately 230.5 million Gram, including approximately 229.9 million Gram deployed in staking. During the quarter, we earned approximately 9.4 million Gram compared to approximately 2.2 million in the first quarter and recognized $15 million of staking revenue. The increase in rewards primarily reflected TON's April network upgrade, which increased the frequency of validation rounds, along with the larger amount of Gram deployed throughout the quarter. Since staking operations began in August 2025, we estimate the treasury has earned approximately 13.8 million Gram through June 30, 2026, and generated approximately $22 million of cumulative staking revenue. Those rewards increased our Gram holdings without requiring additional capital to purchase the tokens. Once earned, the additional Gram can be staked to generate future rewards, creating a simple but powerful compounding effect. In Q2, we also largely completed the actions required to discontinue the inherited VERB legacy operations and focus the business around the Gram treasury and the TON ecosystem. During the quarter, we terminated vendor agreements, reduced contractor and personnel expenses, and certain lower-margin service contracts. Sarah will discuss the expected cost savings in greater detail. I also want to briefly address the Kingsway advisory agreement. As I'm sure you've seen, the company filed a Form 8-K on August 10, announcing that we terminated our advisory services agreement with Kingsway Capital Partners, following the previously disclosed efforts to negotiate a settlement. The company stopped making monthly payments under the agreement in March 2026. During the quarter, the TON community approved the rebrand of TON's native digital asset from Toncoin to Gram, with the ticker GRAM. The rebrand took effect on June 8 following a community vote. The token name and ticker changed, but the underlying blockchain, token balances, addresses, and smart contracts were not affected. Gram was the original name of the currency envisaged in Telegram's first TON white paper. Restoring that identity helps distinguish The Open Network, or TON, from Gram, the network's native currency. The name change occurred as a series of technical improvements made TON faster, less expensive, and more useful. Pavel Durov, CEO of Telegram, has publicly described a 7-part initiative for improving TON. Based on public announcements, 4 elements have been identified to date: increasing network speed, reducing transaction fees, expanding Telegram's role in network validation, and restoring the Gram name. The remaining 3 elements have not been publicly detailed, and we will avoid speculating about what those steps may include. The actions announced so far have addressed several hurdles to expanding TON use, including by improving network speed, transaction costs, and validator support. And I'd like to take a moment to explain the technical changes in greater detail. Telegram's global platform gives TON a distribution engine that most blockchains do not have, but that distribution is only valuable if the underlying network is fast and reliable enough for people to use inside everyday applications. Consumer payments can't be slow or uncertain and small frequent transactions do not fulfill their value proposition if fees consume a meaningful portion of each transaction. The recent upgrades directly addressed both constraints beginning with speed and followed by transaction costs. On April 9, TON deployed the Catchain 2.0 consensus upgrade, reducing blockchain times from approximately 2.5 seconds to approximately 400 milliseconds. Transaction finality improved from approximately 10 seconds to approximately 1 second, while estimated transaction throughput increased approximately tenfold. Later in April, the network completed a validator software update that reduced transaction fees approximately sixfold, bringing the average transaction cost to a small fraction of 1 cent under a fixed fee model. TON Strategy supported both updates through its participation in network governance. Additional upgrades implemented in June improved how validators communicate, organize transactions, and reach consensus. A new networking layer reduced network traffic by about 2 to 4x and improved node connectivity. TON also continued improving the infrastructure used by applications. New APIs expanded support for staking pools, validator operations, and decentralized applications, and data indexing improvements made frequently referenced blockchain information available 2 to 4x faster. The technical upgrades have strengthened TON's ability to support activities such as payments and emerging AI agent applications inside Telegram, where near instant settlement and negligible transaction costs can make frequent automated transactions more practical. These upgrades matter directly to TON Strategy. We hold a strategically significant amount of Gram, substantially all of which is staked. Greater network activity can expand Gram's utility by creating more reasons for developers, service providers, and users to hold, stake, or use the asset. Over time, more productive use can support demand for Gram. Separately, the April upgrades also contributed to the staking performance we reported for Q2. I will now turn the call over to Sarah to discuss our financial results and staking performance. Sarah? Sarah Olsen: Thank you, Kevin, and good morning, everyone. Our second quarter results reflect a strong quarter of staking performance and productive treasury operations. Before I walk through the results, I want to note that our first and second quarter results reflect the VERB businesses as discontinued operations. Total revenue was $15 million compared with $3 million in the first quarter. The increase was driven by higher staking rewards generated by our Gram holdings. Gross profit was $14.3 million, or 95% of revenue, compared with $2.8 million, or 95% of revenue, in the first quarter. Total costs and expenses were $13.8 million, compared with $6.5 million in the first quarter. During the quarter, we resolved a historical equity plan issue that predated TONX, which resulted in the surrender of certain legacy RSUs. Under GAAP, this required us to recognize immediately the remaining $5.5 million of unrecognized compensation expense associated with those awards. Therefore, this charge was non-cash and had no effect on cash flows or stockholders' equity. The results also included approximately $2.9 million of non-cash expense associated with the one-time setup fee under the Kingsway advisory agreement. This charge reflects the write-off of the remaining prepaid asset following the termination of the agreement on August 10. Operating income from continuing operations was approximately $0.5 million compared with an operating loss of $3.7 million in the first quarter. The improvement reflected the increase in staking revenue, and we generated positive operating income despite recognizing the $5.5 million accelerated stock compensation charge and the approximately $2.9 million non-cash Kingsway-related charge I just described. Net income from continuing operations before income taxes was approximately $83.5 million, compared with a net loss of approximately $91.3 million in the first quarter. The second quarter included an $82.8 million net gain from changes in the fair value of our Gram holdings, while the first quarter included an approximately $87.9 million net loss. As mentioned on prior earnings calls, we account for Gram at fair value, so changes in its market price can create significant non-cash gains or losses between reporting periods. Operating income, therefore, provides a clear view of the performance of our staking activities and the operating cost base. Our digital assets had a fair value of approximately $369.5 million at June 30, compared with approximately $272 million at March 31. The increase reflected both the additional Gram earned through staking and the increase in Gram's market value during the quarter. We ended the quarter with approximately $29 million of cash and restricted cash and no debt. We continue to take a conservative approach to managing U.S. dollar liquidity as our revenues are generated in Gram while our operating obligations are denominated in U.S. dollars. As Kevin mentioned, we also substantially wound down the legacy VERB operations during the quarter. Those actions are expected to remove approximately $4 million of inherited annual operating costs from our existing cost base. Turning to staking, we earned approximately 9.4 million Gram during the second quarter, bringing our total holdings to approximately 230.5 million Gram at June 30. Our gross staking yield was approximately 17% on an annualized basis during the quarter. As TON is a blockchain, staking economics are determined by the network, not by us. Our focus is positioning the treasury to efficiently capture those economics as they evolve. In April, a change to the network's consensus mechanism increased the frequency of block production. With substantially all of our eligible Gram staked, that translated directly into greater block production and higher staking rewards for us during the quarter. Our Gram remains unlevered and is staked with institutional partners through segregated nominator pools. We remain focused on institutional-grade custody and staking infrastructure with the goal of keeping our Gram secure, productively deployed, and compounding the treasury over time. I will now turn the call back to Kevin. Kevin Wilson: Thank you, Sarah. I want to explain how we plan to make decisions from our stronger operating base. One of my priorities during my first 3 months has been to create a simple way of communicating how we evaluate the opportunities available to TON's Strategy. Going forward, we will describe that framework in 3 words: Own, Advance, and Compound. Own refers to the foundation already in place, maintaining the strategically significant position in Gram and participating in securing the TON network through staking. We continue to manage the treasury with a focus on Gram per share rather than the absolute treasury size. Advance reflects our ability to use that position along with our public company platform and institutional relationships to invest in, acquire, or partner with select businesses and infrastructure that can promote the overall growth of the TON ecosystem. Potential areas include payments, financial services, TON developer infrastructure, AI, digital identity, and the custody, liquidity, and market structure to expand access to Gram. Compound describes how we evaluate capital allocation decisions. Does the allocation increase long-term value per share? Our objective is to produce returns beyond those available from simply holding Gram, which requires that we compare every use of capital, including additional Gram purchases, share repurchases, maintaining U.S. dollar liquidity, and making operating or ecosystem investments on the same per share basis. This framework is not meant to be rigid, but it's there to guide our decisions. Every use of capital must compete against the alternatives, and retaining liquidity can be the right decision when no other available opportunity offers a sufficiently attractive expected return. Today, our current focus is on 5 main alternatives: purchasing additional Gram, continuing to stake the Gram we own, repurchasing TONX shares, retaining U.S. dollar liquidity, and selectively investing in operating or ecosystem opportunities. We will be selective. We will not pursue an acquisition simply to add revenue or make the company larger or deploy capital merely because it is available. Any investment should either generate an attractive standalone financial return or strengthen TON adoption, Gram utility, or the market infrastructure around the asset in a way that can support the long-term value of our Gram position, and ideally accomplish both. Put simply, we will selectively invest where strategic initiatives and shareholder value are mutually reinforcing. The capital allocation framework explains how we make decisions today, but I want to close our prepared remarks by discussing the long-term opportunity that informs where we may choose to advance strategic initiatives and why we believe the opportunity around TON and Gram can become more valuable over time. The internet made information native to the web. Information could be created, distributed, and accessed directly online globally, but asset ownership and economic activity have largely continued to depend on separate financial systems and intermediaries. We believe TON is designed to be able to make asset ownership and transactions increasingly native to the internet. Practically, this means that payments and settlements can occur directly within digital applications using programmable infrastructure that is continuously available. The TON infrastructure can support a broad array of activities across payments, financial services, commerce, entertainment, and more. TON's fast settlement, low transaction costs, and scalable design make it particularly well-suited to high-volume, always-on applications, while Telegram can provide a familiar interface and direct distribution to users on a global scale. Our primary treasury asset, Gram, serves as the native asset supporting the settlement, validator participation, network security, and coordination across TON. AI agents are one of the most relevant examples of how this shift could develop within the TON ecosystem. As AI evolves from generating information to taking authorized actions on behalf of users, an agent could be asked inside Telegram to buy a product, book a service, or pay another agent to complete a task. Telegram would provide the interface where the instruction is given, while TON could provide the identity, permissions, ownership, payment and settlement instructions needed to complete it. If this model develops, AI agents could initiate a much larger number of small, recurring, and automated transactions than users initiate manually today. This could expand transaction frequency across TON, although the opportunity remains early and will depend on useful applications being built and adopted. For TON Strategy, the relevance is that increased activity can create recurring reasons for developers, applications, service providers, and users to hold, stake, or use Gram. If TON becomes increasingly useful as infrastructure for consumer, application-driven, and automated economic activity, network adoption could expand Gram's utility and strengthen the long-term opportunity of our substantial treasury position. Our role is to own and stake Gram through institutional custody, participate in network validation, and provide public market access to that opportunity. Where we have a credible advantage, we can selectively invest or partner around capabilities to support TON's adoption. We are focused on strategic opportunities with identifiable economics and credible paths to improving long-term value per share. Looking ahead, our priorities for the second half are to manage and compound the Gram treasury, maintain appropriate U.S. dollar liquidity, improve investor access to TON, and evaluate selected opportunities under the framework we discussed today. Our objective is to develop an operating company around a strategically significant Gram position so that the treasury, our public company platform, and any future operating capabilities can reinforce one another over time. That concludes our prepared remarks. Operator? Operator: [Operator Instructions] Today's questions were submitted in advance by shareholders and will be moderated by Alec Wilson from Gateway Group. Sir, please proceed. Alec Wilson: Thank you. Our first question is for Sarah. How much of the benefit from the wind down of the VERB operations was reflected in Q2? And when should we expect the full run rate savings to become visible? And what, if any, meaningful residual costs or obligations remain that are associated with the legacy business? Sarah Olsen: Hey, Alec, thanks. Sure. So based on a current assessment, we expect the wind down of the legacy VERB businesses to reduce annual OpEx by approximately $4 million to $5 million, and that's on a normalized look-back basis. Because we continue to incur certain transition and wind down costs, we expect the majority of those savings to become visible probably in Q4. I should say while we've substantially wound down the legacy operations, we definitely expect certain limited obligations, think legal, admin, other wind down activities to continue into next year. Those costs are expected to be significantly lower, though, than the historical cost base. I think it's also worth noting, beyond the financial savings, an important benefit is really just organizational focus. As we complete the transition away from the legacy business, our team can dedicate substantially more time and resources to executing and focusing on our core strategy. Alec Wilson: Great. Thanks, Sarah. Next one is for Kevin. What developments would give management confidence that TON is becoming more deeply adopted? And how does that translate to value for TON Strategy? Kevin Wilson: Yes, thanks, Alec, and that's a great question. We think about adoption in a few different ways. First, we really look at how people are actually using TON-powered applications inside Telegram. And by that, I mean not just holding Gram as an investment, but also are they using it for payments, digital goods, things like mini apps, games, what type of creator monetization is happening and other everyday transactions. I think that real utility is ultimately what's going to create durable demand for frontier technology like The Open Network. And second, I think we're really looking at a few different aspects of the developer ecosystem, because a healthy developer environment is often really the leading indicator of long-term network value. And then finally, we look at the financial health of the network itself. So things like growth in active wallets, transaction volumes, assets staked, validator participation, and really overall network activity itself, these things all tell us whether adoption is broadening and whether the ecosystem is becoming more resilient. I think finally, we would like to see improvements in market structure and believe that this is an area where we can make an impact. Things like greater exchange availability, deeper liquidity in Gram, custodial support for Gram, and broader institutional participation, and really easier access for investors. These things all help reduce friction and support wider adoption over time. And for our company, those developments matter because our objective is not just to own Gram. We want to own the strategic position in what we believe can become a primary blockchain that powers the next digital economy. And as that ecosystem grows, we believe the value of our treasury can appreciate. Our staking operations will become more valuable, and we then have greater opportunities to deploy capital into the broader TON ecosystem. So in other words, we're investing not just in a digital asset, but in the growth of what we view as an important frontier technology that we feel has an enormous potential. Alec Wilson: Great, thanks, Kevin. Sarah, we have another one for you. Following the April network upgrade, what are the main variables to consider that could cause staking economics to move from current levels? And how should we think about the staking economics for the next few quarters and into 2027? Sarah Olsen: Thanks, Alec. First, I'd note that we don't have any unique visibility into future governance decisions or protocol changes beyond what's publicly available to the community. As we've mentioned a couple of times now, the April network upgrade improved validator performance, which increased the number of blocks being validated, and as a result, materially improved our staking economics. We were well positioned to benefit because we substantially had all of our treasury staked. Looking ahead, though, we are not running the business on the assumption that today's staking economics could continue indefinitely. Yields are naturally going to evolve as the network matures. They can be influenced by governance decisions, including potential changes to block rewards, as well as validator participation and broader dynamics. As a result, we take a conservative approach when planning the business. And I'd say more broadly, and Kevin's touched on this, we've never viewed the investment case for TON as being solely about staking yields. Over the long term, we think the value of this network is going to be driven by adoption. Again, as Kevin mentioned, developers building applications, and other things like stablecoins, payments, and real economic activity happening on chain. Staking is an important component of what we do, but it's really only one opportunity. Our focus is on supporting the long-term growth of the network. We believe that's ultimately what's going to create the best ecosystem and drive the most return for our shareholders. Alec Wilson: Great, thank you, Sarah. And Kevin, maybe one more for you. Is staking as a service an offering for outside Gram holders an opportunity that you all are considering? Kevin Wilson: Yes, thanks, Alec. So we're not currently looking at staking as a service, but I think it's definitely the type of opportunity we might evaluate in the future. I think really the broader point behind our Advance pillar that I identified earlier on in the call is that we believe our position in the TON ecosystem creates opportunities beyond just TON and Gram. And today, we're the largest holder of Gram outside of Telegram, and we're also the largest validator on the network. And that gives us very meaningful operating experience and I think a really unique perspective on how the ecosystem is evolving. And as that network matures, we'll evaluate opportunities where we believe we can really leverage that expertise and our Gram holdings to create value both for the ecosystem and TONX shareholders. But our approach here will remain very disciplined. We'll pursue opportunities where we believe that we have a sustainable competitive advantage and where we see an attractive risk-adjusted return on capital. And staking as a service is certainly representative of the types of opportunities we will consider as we execute on that Advance pillar. Alec Wilson: Thank you. That concludes the Q&A session for today's call. Kevin, I'll turn it back to you for your closing remarks. Kevin Wilson: Yes, thank you, Alec, and thank you everyone who submitted questions. We entered the second half with a productive Gram treasury, a more focused operating structure, and a clear framework for allocating capital. We believe TON's technical progress and Telegram-enabled distribution advantage create a differentiated long-term opportunity. And TON Strategy is well-positioned to participate and enable that opportunity through the public markets. To our shareholders, thank you for your continued support. Operator, that concludes today's call. Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Ton Strategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ton Strategy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. TON Strategy (TONX) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Image source: The Motley Fool. Tuesday, May 12, 2026 at 9 a.m. ET Executive Chairman — Manuel Stotz Chief Executive Officer — Veronika [Full Name not provided in transcript] Chief Financial Officer — Sarah Olsen Need a quote from a Motley Fool analyst? Email [email protected] Manuel Stotz: Thank you, operator, and thank you, everyone, for joining us. For today's call, I'll start by framing why we believe TON matters and why we believe TON Strategy Company has a clear role to play in the ecosystem. Then Sarah will walk you through execution in the year's financial results, and I'll come back at the end with a few closing thoughts. Through my work at Kingsway, I've spent years investing in and working around digital assets. And in 2025, I also served as President of the TON Foundation during a very important period for that ecosystem. That experience informs my view of TON and why we believe TON Strategy Company has an important role to play in the market. TON Strategy Company is built to hold Toncoin to stake a substantial portion of the position and to increase TON held per share over time inside a public company structure. At the asset level, we believe TON is a differentiated network because it is designed for real economic utility and activity inside the Telegram ecosystem, where more than 1 billion users already communicate, transact and engage with digital services. The TON blockchain is designed to support payments, stablecoins, digital goods and application activity at scale. And we believe its combination of utility, distribution and still early adoption is what makes the asset compelling over the long term. We also think the network's growing developer and application ecosystem is an important part of that story. At the company level, we believe TON Strategy Company serves an important purpose. We've built TON Strategy to hold and stake Toncoin inside a public company structure designed to provide transparency, discipline and access to that exposure. We believe our structure is particularly relevant now while direct access to TON remains more limited in U.S. markets. We also think the staking component is a meaningful part of our business strategy. By staking a substantial portion of our holdings through institutional custodians and segregated validated structures, we have been able to make our treasury productive over time rather than leaving those assets idle. We took the first major steps in this strategy during the second half of 2025. In August, we raised capital, established our initial position and began staking. Over the balance of the year, we've also built out our operational and reporting foundation needed to support the strategy inside a public company. The fourth quarter was the first full fiscal period with staking in place, which is giving us a better view of how the model operates with the operating infrastructure fully established. I also want to provide a quick update on our CEO transition. As previously announced, the company continues to conduct an active search for a permanent CEO as part of a planned leadership transition. Veronika continues to serve as CEO during this transition, and our Board remains engaged in the search process. I'd personally like to thank Veronika for her integral role in launching TON's strategy and her continued commitment to the Toncoin ecosystem. With that, I'll turn it over to Sarah. Sarah? Sarah Olsen: Thank you, Manny. Thanks, everyone, for joining. I've had the privilege to work across capital markets and digital assets with a focus over the last decade on the intersection of crypto infrastructure and traditional markets. As we've gotten TON strategy up and running, my primary focus has been establishing the operating and reporting framework to support the business within a public company environment. As context for the financial results, our 2025 results reflect both the implementation of our TON treasury strategy beginning in August as well as the contribution of the company's legacy operating businesses. For the full year 2025, total revenue was $12.8 million compared to $0.9 million in 2024 and included approximately $4 million from staking activities following the implementation of the TON treasury strategy. Gross profit was $7.6 million compared to $0.7 million in 2024. Total costs and expenses were $49.2 million compared with $12.5 million in 2024. The increase was primarily due to noncash stock-based compensation expense, treasury implementation costs and costs associated with the infrastructure to support custody, staking, reporting and compliance. Loss from operations was $36.4 million compared with $11.6 million in 2024. Net loss before income taxes was $148.6 million compared with $10.5 million in 2024. Net loss included a $114.2 million net loss on crypto assets, which reflects realized and unrealized fair value changes in Toncoin Holdings during the year. At December 31, 2025, digital assets held a fair value of approximately $356.8 million and cash and restricted cash totaled approximately $39.7 million. From an operating standpoint, the important takeaway is that our treasury is active and productive. As of year-end, we had 219.7 million tons staked, and we earned 2.19 million tons since taking implementation. We expect to continue updating most company reported treasury metrics through our regular quarterly and annual public filings, consistent with our long-term treasury approach. We also recently launched an analytics dashboard on our website, tonstrack.com, to support transparency around the treasury and provide additional visibility into certain market-based and drive metrics alongside the company reported data. Going forward, operationally, our emphasis will remain on disciplined treasury management, which means taking a substantial portion of our position while preserving appropriate liquidity and financial flexibility. We intend to continue being deliberate in how staking rewards are used or retained over time, and we are applying that same discipline to our cost structure, including careful expense management and a continued focus on operating efficiently. I'll now turn it back to Manny for closing remarks. Manuel Stotz: Thank you, Sarah, and I very much appreciate the wonderful job you and the team have done on our first 10-K. To wrap up, I'd like to leave you with 3 key points. First, we entered 2026, having moved through the initial launch phase, and we are now operating the model with the core elements in place, a substantial Toncoin position, staking and the public company structure and processes needed to support the strategy. Second, we continue to believe TON is a very differentiated asset with growing utility and a network that is still very early in its development. Our view is that our public company structure offers a distinct way to access the TON ecosystem through the public markets. Third, our core focus remains on disciplined execution. We strive to manage the position carefully, operate transparently and continue increasing TON held per share over time through a measured approach. Thank you very much for joining us this morning, and thank you to our shareholders for your continued support. Operator, that concludes our prepared remarks. Operator: Thank you. Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation, and have a wonderful day. Before you buy stock in Ton Strategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ton Strategy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $463,900!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,294,401!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of June 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ton Strategy (TONX) Q4 2025 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: May 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. TON Strategy Co (NASDAQ:TONX) holds a substantial position in Toncoin, with approximately 221.9 million Toncoin, including 221.2 million staked, representing 4.29% of all Toncoin. The company has a strong balance sheet with no debt, providing financial stability and flexibility. Recent network upgrades have improved the TON blockchain's speed, cost-efficiency, and transaction capabilities, enhancing its appeal for high-volume use cases. TON Strategy Co (NASDAQ:TONX) generated approximately $3 million in staking revenue during the first quarter, demonstrating the productivity of its treasury strategy. The company's public structure offers transparency and institutional execution, providing a regulated way for investors to gain exposure to Toncoin. The company reported a net loss before income taxes of $91 million, including an $87.9 million unrealized net loss from crypto assets due to fair value changes in Toncoin holdings. Total costs and expenses for the quarter were $7.8 million, reflecting high operational costs associated with treasury operations and legacy businesses. Despite the staking revenue, the company experienced a loss from operations amounting to $3.9 million. TON Coin's market is still developing, with broader institutional services like custody and staking in early stages, posing challenges for market access. The company's focus on Toncoin, a less understood token in U.S. public markets, may limit investor interest and understanding. Warning! GuruFocus has detected 5 Warning Signs with TONX. Is TONX fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the strategic priorities for TON Strategy Co moving forward? A: Kevin Wilson, CEO, stated that the company will focus on managing the treasury with a long-term value perspective, enhancing market communication about the TON network, supporting liquidity and market access for TON Coin, and aligning expenses with the core treasury strategy. Q: How does the TON blockchain differentiate itself from other blockchains? A: Kevin Wilson, CEO, explained that the TON blockchain combines technical performance with exceptional distribution reach, particularly through Telegram's vast user base. It features dynamic sharding and asynchronous message processing, allowing for high-volume, low-cost transactions, which are crucial for consumer-scale applications. Q: What were the financial highlights for the first quarter of 2026? A: Sarah Olson, CFO, reported that the company generated approximately 2.2 million TONCoin through staking, recognized $3 million in staking revenue, and ended the quarter with a fair value of $272 million in TonCoin holdings. The company also held $35 million in cash and restricted cash. Q: How has the recent appreciation of TON Coin impacted the company's financial position? A: Sarah Olson, CFO, noted that subsequent to the quarter's end, TON Coin appreciated significantly, increasing the fair value of the company's holdings to approximately $433.3 million as of May 6, 2026. This appreciation provides the company with greater flexibility in executing its treasury strategy. Q: What role does TON Strategy Co play in providing exposure to TON Coin for investors? A: Kevin Wilson, CEO, emphasized that TON Strategy Co offers transparent, institutionally managed exposure to TON Coin through a regulated public structure, providing a unique value proposition in the digital asset treasury market. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, May 12, 2026 at 9 a.m. ET Chief Executive Officer — Kevin Wilson Chief Financial Officer — Sarah Olsen Need a quote from a Motley Fool analyst? Email [email protected] Kevin Wilson: Thank you, operator, and thank you, everyone, for joining us. For today's call, I will start by framing how I see TON Strategy's position today. Why we believe the TON Blockchain matters, and why we believe our company is playing a clear Role As A US listed public company dedicated to Toncoin and supporting the TON ecosystem. Sarah will then walk through the first quarter financial results and treasury update, and I will come back with a few closing thoughts. As this is my first earnings call as CEO, I want to share how I view the foundation already in place and the opportunity to build from where we are presently. TON Strategy Co. is the largest public company treasury dedicated to Toncoin. and we are 1 of the largest validators of the token. As of 03/31/2026, we held approximately 222 million Toncoin in total, including approximately 221 million Toncoin staked. Based on TONSTAT data, our holdings represent approximately 4.29% of all Toncoin, and the Toncoin stake through our infrastructure represents approximately 26.18% of the network. We have a substantial Toncoin position. Active staking operations, a strong balance sheet with no debt and the custody and reporting infrastructure needed to execute our strategy with transparency. In other words, this is no longer a setup story. The treasury is established with assets substantially staked, and the company has now completed 2 full quarters of staking operations. My focus is on taking that foundation and turning it into broader market recognition and long term shareholder value. I officially stepped into the role as CEO on May 4. So I am not going to lay out a rigid road map today, but the direction we will take the company is clear. And I want to share how we are thinking about the areas we can most directly influence. First, we will continue to manage the treasury through a long term per share value lens. We hold approximately 222 million Toncoin as of quarter-end including approximately 221 million Toncoin staked. Going forward, we are focused on making the right capital allocation decisions that support growth in Toncoin held per share over time. We will continue to maintain appropriate liquidity to execute the strategy, and run the company platform while evaluating capital allocation opportunities thoughtfully and with discipline. Second, we see an opportunity to communicate with the market more actively around both the TON network thesis and our company model. Toncoin is currently less understood than major tokens in the broader U. S. Public markets. And part of our job is to explain why Toncoin matters, why the TON blockchain network is differentiated, and is built to support the financial infrastructure of the future. And why our company is built to provide exposure to that opportunity within a public company structure. Third, over time, we intend to prioritize pathways to support deeper liquidity and market access around Toncoin. We expect to be very thoughtful and deliberate in this area. Liquidity market structure, and institutional access are important to the development and adoption of the TON ecosystem. And they are also relevant to how investors evaluate our company. We intend to explore appropriate ways to support that development over time. And fourth, we are focused on aligning our expenses and investment with the company's core treasury strategy and highest return opportunities. This is an area where we will be thoughtful so that the operating platform is directly supporting the core strategy. That is how we are thinking about the job in front of us. And now I would like to spend a few minutes discussing why the TON blockchain is important and compelling. We believe the TON blockchain is becoming increasingly relevant as blockchain activity moves towards faster, lower cost, high volume use cases. The key difference between TON and other chains is that it combines technical performance with exceptional distribution reach. Telegram gives the TON network a unique distribution advantage compared to most blockchains. Telegram has a global 1 billion+ user base. Users communicate there and interact with communities there. They are using bots and mini apps, and increasingly engaging with digital services inside the Telegram ecosystem. The TON network is developing within an existing consumer environment where digital interaction is already happening. From a technical perspective, the TON blockchain's architecture is designed for scale. Dynamic sharding and asynchronous message processing allow activity to be distributed across the network, rather than forcing each application or transaction through a single lane like some other blockchain. The network is built for many transactions and applications to run simultaneously. Which is critical for supporting consumer scale functions. Recent network upgrades strengthen that case. In April, the TON network implemented upgrades that reduced block times, shortened transaction settlement times, increased throughput and significantly lowered transaction fees. Those changes make the network faster, more cost efficient, and better suited for applications that require frequent transactions. Public ecosystem data also shows TON among the fastest layer 1 blockchains by finality. Which reinforces the importance of speed, and settlement performance as part of the TON thesis. The impact of the recent upgrades was visible in the economics of the network as well. Gross staking yields increased to 1.39% in April, from 0.34% in March. Representing approximately a 4x increase month over month. On an annualized basis, the April gross staking yield was 16.7%. TON Strategy was well positioned to benefit from that uplift through its staking infrastructure. The technical and economic improvements are meaningful for the practical utility and performance of payments. Developer tools, gaming, and other Telegram based applications. We believe the TON network is particularly relevant for emerging Agentic AI use cases. To operate reliably inside consumer applications and payment flows, AI agents need low cost, low latency ways to act. On the TON network, an AI agent can operate through its own on chain wallet, or smart contract account. The agent has its own address on the network, a way to send and receive payments, and programmable rules for how it can interact with applications and services. The agent can do more than just recommend actions to users. It has the potential to pay settle, and interact with services directly on the TON Since the accounts on TON are set up as programmable smart contracts, they can include permissions and logic for multi step activity on chain instead of relying on separate off chain coordination. Telegram adds the distribution. Agents can live directly inside chats, bots, or mini apps where users are already active. Paired with TON payments, AI agents can help create a much more seamless user experience. Users can interact conversationally, while agents can potentially take actions and transact in the background. We think that combination of distribution, payments, programmable accounts, and low cost settlement is 1 important reason that TON is differentiated for high volume consumer and AI agent use cases. This brings us to TON Strategy Company. And why it matters. For many investors in The United States in particular, direct exposure to Toncoin can be difficult or impractical. In 2025, in coordination with the TON Foundation, Toncoin became tradable as a spot cryptocurrency on Coinbase, Robinhood, and Gemini. Which we view as an important first step in expanding US access. Still, broader institutional services around Toncoin, including custody, staking, and prime services are earlier in development. TON Strategy is built specifically to provide transparent institutionally managed exposure to Toncoin through a regulated public structure. And the value proposition extends beyond access. We hold and stake Toncoin through institutional custody and segregated staking infrastructure. We also bring public company reporting in a scaled, long term per share value framework to the way the treasury is managed. In the digital asset treasury market that is still maturing, we believe this level of operating discipline and transparency matters a great deal. With that, I want to acknowledge the team that is already in place. This is a strong lean group. With deep institutional experience across digital assets, capital markets, reporting and compliance. Including experience building and managing digital asset strategies, inside top tier financial institutions. Our experience gives us the foundation needed to execute. In Q1, this model continued to demonstrate productivity. We earned 2.2 million Toncoin during the quarter through staking activities, and recognized $3 million of staking revenue. We ended the quarter with 221 million Toncoins staked and $35 million of cash and restricted cash. Sarah will now walk through the first quarter financial results and treasury update in more detail. Sarah? Sarah Olsen: Thank you, Kevin, and good morning, everyone. Before turning to the quarter, I also want to welcome Kevin to the CEO role. Kevin brings the ideal background for where our company is today, and is well positioned to lead it into the future. He has built and led institutional markets businesses at Citi, and more recently worked at the intersection of digital assets, trading infrastructure, and blockchain based prime brokerage initiatives at Integral Development Corp, a Palo Alto based fintech. His unique blend of global markets experience, institutional relationships, and digital asset fluency is directly relevant to the work ahead as we build a more established public company platform dedicated to supporting Toncoin and the TON network. We are very excited to have him join and lead the company into its next stage. For the first quarter, our results reflect the continued operation of the Toncoin treasury strategy including staking activities alongside our legacy operating businesses. Q1 was our second full quarter of staking operations, and the treasury continued to perform as intended. During the quarter, we generated 2.2 million Toncoin through institutional custody and segregated staking infrastructure and recognized $3 million of staking revenue. This is an important part of the model. Staking provides an ongoing revenue opportunity tied to our Toncoin position and allows the-- As of the end of the first quarter, approximately 222 million units of Toncoin including approximately 221 million units staked with a fair value of $272 million. We also ended the quarter with $35 million of cash and restricted cash. Subsequent to quarter end, Toncoin appreciated significantly amid recent network upgrades, Telegram's announcement that it plans to help drive TON ecosystem growth and infrastructure development and broader strength across digital asset markets. As of May 6, 2026, the approximately 222 million Toncoin held by the company had an estimated fair value of $433 million The combination of staking productivity and a clean balance sheet with meaningful liquidity and no debt gives TON Strategy flexibility as we continue to execute the treasury strategy. Turning to the income statement. Total revenue was $5.3 million and included approximately $3 million from staking activities as well as contributions from the company's legacy operating businesses. Gross profit was $4 million Total costs and expenses were $7.8 million reflecting costs associated with treasury operations, personnel, reporting, compliance, and legacy operating businesses. Loss from operations was $3.9 million Net loss before income taxes was $91 million Net loss included an $87.9 million unrealized net loss in crypto assets, reflecting fair value changes in Toncoin Holdings during the quarter. From an operating perspective, the treasury remained deployed staking was active, and rewards were generated. Inherently, the underlying asset will move from period to period but our focus is on the areas we can control. Including staking execution, balance sheet strength, liquidity, and supporting the long term development of the TON ecosystem. We expect to continue updating most company- reported treasury metrics through our regular quarterly and annual public filings consistent with our long term treasury approach. Please refer to our analytics dashboard on our website tonstrat.com, for the latest market based and derived treasury metrics alongside the company reported data. I will now turn it back to Kevin for closing remarks. Kevin Wilson: Thank you, Sarah. To close, I want to bring the discussion back to the core of the opportunity. TON Strategy has scale. We are the largest public company treasury dedicated to Toncoin, and substantially all of our Toncoin is staked. Our company has a productive treasury Staking creates an ongoing revenue opportunity tied to the asset we hold. And gives us a way to increase Toncoin held over time. We have a strong public company structure that brings transparency, reporting, and institutional execution to Toncoin exposure. The work in front of us is to make that structure better understood by this market. And to execute consistently against the pieces we control. This includes how we manage the treasury, and evaluate capital allocation, how we communicate the TON network thesis publicly, how we can support market access around Toncoin, and how we can align company resources around the core strategy. We are excited about the opportunity ahead to position TON Strategy as the company built for public exposure to Toncoin, and supporting the financial infrastructure of the future. We look forward to updating you on our progress. Thank you for joining us this morning, and thank you to our shareholders for your continued support. Operator, that concludes our prepared remarks. Operator: Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect. Before you buy stock in Ton Strategy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Ton Strategy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $460,826!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,345,285!* Now, it’s worth noting Stock Advisor’s total average return is 983% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Ton Strategy (TONX) Q1 2026 Earnings Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Release Date: March 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue for 2025 increased significantly to $12.8 million from $0.9 million in 2024, showcasing strong growth. The implementation of the Ton Treasury Strategy contributed approximately $4 million from staking activities. Gross profit rose to $7.6 million in 2025, compared to $0.7 million in 2024, indicating improved profitability. The company has established a substantial position in Toncoin, with 219.7 million Tons staked by year-end. A new analytics dashboard was launched to enhance transparency around the Treasury and provide additional visibility into market-based metrics. Total costs and expenses increased significantly to $49.2 million in 2025, up from $12.5 million in 2024, driven by non-cash stock-based compensation and treasury implementation costs. The company reported a net loss before income taxes of $148.6 million, compared to $10.5 million in 2024. Net loss included a substantial $114.2 million net loss on crypto assets due to fair value changes in Toncoin holdings. Loss from operations was $36.4 million in 2025, compared to $11.6 million in 2024, indicating operational challenges. The company is still in the process of searching for a permanent CEO, which may impact leadership stability. Warning! GuruFocus has detected 3 Warning Signs with TONX. Is TONX fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on the financial results for 2025, particularly the revenue and expenses? A: Sarah Olsen, Chief Financial Officer, explained that for the full year 2025, total revenue was $12.8 million, a significant increase from $0.9 million in 2024. This included approximately $4 million from staking activities following the implementation of the Ton Treasury Strategy. Total costs and expenses were $49.2 million, up from $12.5 million in 2024, primarily due to non-cash stock-based compensation, treasury implementation costs, and infrastructure support expenses. Q: What is the current status of the company's digital assets and cash holdings? A: Sarah Olsen stated that as of December 31, 2025, the company held digital assets with a fair value of approximately $356.8 million and cash and restricted cash totaling approximately $39.7 million. The treasury is active and productive, with 219.7 million Tons staked, earning 2.19 million Tons since the staking implementation. Q: How is the company managing its treasury and staking strategy? A: Sarah Olsen emphasized that the company is focused on disciplined treasury management, which involves staking a substantial portion of their position while maintaining liquidity and financial flexibility. The company is deliberate in how staking rewards are used or retained and is applying the same discipline to cost management and operational efficiency. Q: Can you elaborate on the strategic importance of Ton Strategy Company in the market? A: Manuel Stotz, Executive Chairman, highlighted that Ton Strategy Company is built to hold and stake Toncoin within a public company structure, providing transparency and access to the Ton ecosystem. The company believes that Ton is a differentiated network designed for economic utility within the Telegram ecosystem, which has over 1 billion users. Q: What are the future operational priorities for Ton Strategy Company? A: Manuel Stotz stated that the company will focus on disciplined execution, managing their position carefully, operating transparently, and increasing Ton held per share over time. The company aims to continue its strategic approach to treasury management and cost efficiency. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

The company's core strategy is built on holding and staking Toncoin to increase the amount of TON held per share over time within a transparent public company structure. Management views TON as a differentiated network due to its integration with Telegram's 1 billion users, positioning it for real-world economic utility in payments and digital goods. The treasury strategy transitioned from idle asset holding to active productivity in the second half of 2025 by staking a substantial portion of holdings through institutional custodians. The fourth quarter of 2025 served as the first full fiscal period with the complete staking and reporting infrastructure operational, providing a baseline for the current model. The company positions its public structure as a critical access point for investors while direct access to TON remains limited in U.S. markets. Operational focus has shifted from the initial launch phase to disciplined treasury management and the build-out of a reporting framework suitable for digital assets. Management intends to continue staking a substantial portion of their position while balancing the need for appropriate liquidity and financial flexibility. The company is maintaining a deliberate approach to how staking rewards are utilized or retained to support long-term treasury growth. Future reporting will prioritize transparency through regular filings and the newly launched 'tonstrack.com' dashboard to provide market-based and derived metrics. A permanent CEO search is ongoing to complete a planned leadership transition, with the current CEO remaining in place to ensure continuity. The 2026 strategy focuses on disciplined execution and a measured approach to increasing the TON-per-share metric. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Net loss for 2025 included a $114.2 million net loss on crypto assets, reflecting realized and unrealized fair value changes in Toncoin holdings. Operating expenses increased significantly to $49.2 million, driven by noncash stock-based compensation and the one-time costs of establishing crypto-specific infrastructure. The company reported 219.7 million tons staked as of year-end, which generated 2.19 million tons in rewards since the implementation of the treasury strategy. Legacy operating businesses contributed to the $12.8 million total revenue, though $4 million was specifically derived from new staking activities. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

LAS VEGAS, Nov. 12, 2025 (GLOBE NEWSWIRE) -- TON Strategy Company (“TON Strategy” or the “Company”) (Nasdaq: TONX), a digital asset treasury company dedicated to holding Toncoin ($TON), today reported financial results for the third quarter ended September 30, 2025 and provided an update on the Company’s TON treasury operations. TON Strategy is a digital asset treasury and Web3 ecosystem company focused on supporting The Open Network (TON), a public Layer-1 blockchain designed to integrate directly with Telegram, where more than 1 billion monthly active users communicate, transact, and build communities. TON provides the rails for payments, digital property, stablecoins, and decentralized mini applications inside the Telegram messaging ecosystem. In August 2025, the Company initiated its TON Treasury Strategy. Proceeds from the Company’s $558 million private placement were used to acquire $TON and begin staking activities on The Open Network. TON Strategy intends to hold $TON over a long horizon, stake a significant portion of its holding to help support the network, and generate recurring on-chain rewards that contribute to treasury asset value over time. Third Quarter and Recent Operational Highlights Acquired 217.5 million units of $TON and staked 177.1 million units of $TON as of September 30, 2025. Earned 336,000 units of $TON in staking rewards and recognized $707,000 in staking revenue, ending the period with approximately 217.8 million units of $TON. Held digital assets with a fair value of $588.2 million and $53.9 million in cash and restricted cash at September 30, 2025. Total stockholders’ equity was $639.5 million as of September 30, 2025, representing book value per share of approximately $10.82. Toncoin began trading on Gemini, Robinhood and Zengo, expanding global access for $TON following treasury launch. Approved up to $250 million stock buyback program and repurchased 1,984,072 shares at prices below book value per share. Rebranded as TON Strategy Company and began trading on Nasdaq under the ticker TONX on September 2. Continued operating MARKET.live, LyveCom and Go Fund Yourself while dissolving or divesting non-core ecommerce assets. Financial Results for the Third Quarter 2025 Revenue totaled $3.6 million, compared to $0.1 million in Q3 2024, and included $707,000 from staking activities implemented in August 2025. Gross profit was $2.7 million (75.4% of revenue) compared to $74,000 (57.8% of revenue), in Q3 2024. Total costs and expenses were $25.3 million, compared with $2.4 million in Q3 2024, reflecting non-cash stock-based compensation, treasury implementation costs and legacy operating expenses. Net gain on crypto assets totaled $120.4 million, reflecting the quarter-end fair value measurements. The Company did not sell or dispose of digital assets during the period. Net income was $84.7 million, compared with a net loss of $2.0 million in Q3 2024. Digital assets held at September 30, 2025 had a fair value of $588.2 million. Cash and restricted cash totaled $53.9 million at September 30, 2025. Management Commentary Chief Executive Officer Veronika Kapustina stated, “The third quarter marked the operational launch of our TON strategy and the beginning of our long-term participation in The Open Network. We deployed capital into Toncoin, began staking operations, and earned our first on-chain income. Our objective is to build a differentiated public company aligned with the expansion of The Open Network by holding and staking $TON over a long-term time horizon, executing a disciplined capital allocation strategy, and exploring ways to support and invest in the development and security of The Open Network.” Chief Financial Officer Sarah Olsen added, “This quarter was about execution. That included not only closing on the PIPE capital and accumulating Toncoin, but also underwriting key service providers and building the infrastructure needed to support our corporate treasury strategy. Our efforts focused on security, technology, financial reporting and compliance, which we believe establish a strong foundation for future growth. We also plan to make key additional hires to strengthen our bench and ensure best practices across all core areas of our business.” About TON Strategy Company TON Strategy Company (Nasdaq: TONX) is focused on the accumulation of $TON – the native cryptocurrency of Telegram’s billion-user platform – for long-term investment, whether acquired through deployment of proceeds from capital raising activity, staking rewards or via open market purchases. The Company aims to steadily expand its $TON holdings, stake $TON, and support the development of a tokenized economy inside Telegram. In addition, the Company continues to operate legacy business units, including MARKET.live, a multi-vendor livestream shopping platform, and LyveCom, an AI-powered social commerce innovator that enables brands and merchants to deliver omnichannel livestream shopping experiences across websites, apps, and social platforms. Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact contained in this press release should be considered forward-looking statements, including, but not limited to, statements regarding: our business and growth strategy; market adoption; the performance of our products and benefits to customers; our estimated total addressable market, serviceable available market, and serviceable obtainable market. Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “target,” “will,” “would” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: our incursion of significant net losses and uncertainty whether we will achieve or maintain profitable operations; our ability to grow and compete in the future, and to execute our business strategy; our decision to implement a cryptocurrency treasury strategy, whereby we acquire Toncoin, the native cryptocurrency of The Open Network (“TON”) blockchain and our dependence on TON and Toncoin as a result of this strategy; our ability to maintain and expand our customer base and to convince our customers to increase the use of our services and/or platform; our financial results and the market price of our common stock may be affected by the price of Toncoin, and our Toncoin holdings will be less liquid than cash and cash equivalents; changes in the broader digital asset regulatory landscape and as it relates to TON and Toncoin and our failure to comply with applicable regulatory requirements and risks related to any actions we may take to prevent or correct such failure; the availability of opportunities to stake Toncoin; our ability to maintain and expand our customer base and to convince our customers to increase the use of our services and/or platform; the competitive market in which we operate; our ability to increase the number of our strategic relationships or grow the revenues received from our current strategic relationships; our ability to develop existing services or acceptable new services that keep pace with technological developments; our ability to successfully launch new product platforms, including MARKET.live, the rate of adoption of these platforms and the revenue generated from these platforms; our ability to deliver our services, as we depend on third party providers; our ability to attract and retain qualified management personnel; our susceptibility to cybersecurity incidents and other disruptions, particularly as it relates to our holdings of Toncoin; our ability to maintain compliance with the listing requirements of the Nasdaq Capital Market; the impact of, and our ability to operate our business and effectively manage our growth under evolving and uncertain global economic, political, and social trends, including legislation banning or otherwise hampering the digital asset landscape, inflation, rising interest rates, and recessionary concerns; and other important factors discussed in the section entitled “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024 and our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2025, as any such factors may be updated from time to time in our other filings with the SEC, including, but not limited to our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025, which are accessible on the SEC’s website at www.sec.gov and our Investor Relations page on our website at https://ir.tonstrat.com. Although we believe that our plans, intentions, expectations, strategies and prospects as reflected in or suggested by those forward-looking statements are reasonable, we can give no assurance that the plans, intentions, expectations or strategies will be attained or achieved. The forward-looking statements in this press release are based on information available to us as of the date hereof, and we disclaim any obligation to update any forward-looking statements, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Investor Contact Information Cody Slach and Alec Wilson Gateway Group, Inc. [email protected] 949-574-3860 -Financial Tables to Follow-