Overview

• Digital asset treasury firm's Q1 revenue was $5.3 mln, driven by Toncoin staking activities

• Company posted Q1 net loss of $91.0 mln, mainly from $87.9 mln unrealized loss on crypto assets

• Staking yields rose sharply in April after TON network upgrades; Toncoin value rebounded in May

Outlook

• Company intends to prioritize liquidity and align expenses with its core treasury strategy

• Company expects to benefit from higher staking yields after recent TON network upgrades

• Management sees TON network upgrades and Telegram integration as drivers of future relevance

Result Drivers

• STAKING REVENUE - Majority of Q1 revenue came from staking Toncoin, with 2.2 mln $TON earned and $3.0 mln in staking revenue

• UNREALIZED CRYPTO LOSSES - Q1 net loss was mainly due to $87.9 mln unrealized loss on Toncoin holdings as fair value declined

• NETWORK UPGRADES - TON network upgrades in April improved staking yields, with gross staking yields rising to 1.39% from 0.34% month-over-month

Company press release: ID:nGNX3Lmls6

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Net Income		-$90.95 mln

Analyst Coverage

• Wall Street's median 12-month price target for Ton Strategy Co is $62.00, about 1,761.9% above its May 11 closing price of $3.33

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