SDEV staking matches $2.2M cash proxy; $50.6M write-down

Stablecoin Development Corporation reported in a July 30 filing that $2.2 million of second-quarter staking rewards roughly matched the company’s non‑GAAP cash operating expense proxy. The rewards were received in SKY tokens and none were sold during the quarter.

The company derived the $2.2 million figure by subtracting about $3.2 million of noncash stock compensation from $5.4 million of general and administrative expense. SDEV earned 31.7 million SKY in the quarter and reported holding 2.29 billion SKY at June 30, with a $147.2 million cost basis and a $119.2 million fair value. SKY accounted for roughly 94% of SDEV’s $127.5 million in total assets at quarter‑end.

The filing showed a $50.6 million unrealized, noncash loss on digital assets for the quarter. That valuation change contributed to a $53.8 million operating loss and a $41.1 million net loss. As of June 30 the company held $7 million in cash, reported $300,000 of total liabilities and carried no debt.

An unaudited update dated July 27 put holdings at approximately 2.30 billion SKY and cumulative staking rewards at 76.8 million SKY. Using an illustrative price of $0.056 per token, that July 27 token count produced an indicative value near $129.6 million if the position were unchanged. Because the company did not sell SKY during the period, converting staking rewards into cash would require liquidating token holdings.

Equity dilution is a separate exposure disclosed in the filings. A June cashless exercise of October 2025 pre‑funded warrants issued 22.6 million shares and brought shares outstanding to 50.4 million as of June 15. On July 16 holders gained the right to exercise the first tranche of January 2026 pre‑funded warrants for up to about 33.5 million additional shares, subject to holder‑specific ownership limits. That maximum equals roughly 66% of the June 15 outstanding share count; the comparison is cross‑date and does not mean those shares have been issued. The January warrant liability had been reclassified to equity after shareholder approval in March, and the October warrant liability was removed after the June exercises. Any actual dilution will depend on whether and when warrant holders exercise.

Shareholder liquidity actions since the quarter end have been limited. From July 1 through July 27 the company sold 24,714 shares through an at‑the‑market program and raised about $26,000 net. SDEV shares closed July 31 at $1.15 on Nasdaq.

SDEV is a public company focused on holding and staking the SKY governance token. The company’s reported staking income covered its chosen cash‑cost proxy for the quarter; the filings show a concentrated balance sheet exposure to SKY and potential dilution tied to outstanding warrants.