TON Strategy reported a 17% annualized gross staking yield for the second quarter, but its new filing also revealed a mismatch between token-denominated income and operating cash flows.
The company recognized over $15 million of staking revenue after receiving 9,438,177 Gram, the TON blockchainโs native token formerly known as Toncoin.
Yet its $83.5 millionย in pre-tax income from continuing operations was driven by an $82.8 million net fair valueย gain on its digital assets. Operating income from continuing operations was $479,000.
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For the first half of 2026, continuing operations used $10.6 million of operating cash. TON Strategy ended June with nearly $29 million of cash and restricted cash, and its SEC-filed earnings release said it had no debt.
The debt-free balance sheet reduced near-term liquidity pressure, yet staking had not covered the companyโs cash requirements across the verified period.
Protocol issuance lifted token revenue
TON Strategy said its second quarter rewards equated to an approximately 17% annualized gross staking yield. The figure extrapolates one quarter and is neither a net shareholder return nor a measure of company-wide costs.
The filing records the Gram received as non-cash consideration, so revenue can be recognized before token rewards produce cash proceeds. Its first-half cash-flow reconciliation deducted nearly $19 million of non-cash Gram consideration from net income.
The cash-flow statement separates token accruals and fair-value marks from the operating cash they may eventually produce.
The company attributed the increase in rewards primarily to Catchain 2.0. The April upgrade cut TONโs mainnet block interval from about 2.5 seconds to roughly 400 milliseconds, producing about 6.25 times more blocks per second.
TON documents creation rewards per block, so the faster cadence can issue more tokens to validators. Protocol settings, the amount of Gram staked and the tokenโs market price can all change the outcome.
As of June 30, TON Strategy held 230.5 million Gram and had 229.9 million staked. The company said, citing TonStat data as of Aug. 4, that the position represented roughly 4.4% of supply and about 35% of all staked Gram.
Live TonStat data supports the broader description of roughly one-third of network staking, although the public page does not preserve the companyโs dated denominator.
The filing says that BitGo and Blockchain.com manage and stake TON Strategyโs holdings through dedicated pools, and that those custodians may use third parties to operate validator infrastructure.
The quarter produced substantial token rewards, while continuing operations still used cash during the first half. Sustained cash generation requires those Gram rewards to retain enough value to cover expenses as network conditions change, alongside lower cash use from continuing operations.
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