Imagine a profitable business posting a $24M net loss. Ask TON Strategy.
Per TON Strategy's Nov 10 results, $27.2M of the loss is on paper. The GRAM coins it holds (GRAM is the new name of Toncoin, the coin of the Telegram-linked blockchain) were worth less at Sept 30 than at June 30. Unrealized means revalued, not sold.
TON Strategy (Nasdaq: TONX) is a listed company whose main asset is that coin. The quarter in plain numbers:
- Revenue $13.1M, mostly staking rewards (coins earned for helping run the network)
- Operating income about $4.0M, up from about $0.5M the quarter before
- Paper loss on GRAM: $27.2M
- Net loss: $23.97M
One quarter earlier the same paper line added $82.8M. Same company, same coins, opposite sign.
By my math, it holds about 235.1M GRAM worth $348.5M, so a 1% move in GRAM is about $3.5M. That is close to the whole quarter's operating income. The coin's price writes the headline, whatever the business does.
Even revenue follows the price. It earned about 9.4M GRAM, like the quarter before, but revenue fell from $15.0M to $13.1M as GRAM got cheaper (per Crypto Briefing). The stock still rose 2.4% on results day (per ChainCatcher).
What are different scenarios?
- If GRAM ends the next quarter above its Sept 30 level (about $1.48 by my math), the same line turns into a gain
- If it ends below, expect another paper loss, whatever the staking income
What to note?
- Split the headline: operating income first, paper moves second
- For any coin-holding company, the coin is the biggest line
- Staking pays in the coin, so income shrinks when the price falls
Net loss or operating income, which line do you read first?
Experience, not financial advice. $GRAM
#TONStrategyReports$23.97MQ3NetLoss
Per TON Strategy's Nov 10 results, $27.2M of the loss is on paper. The GRAM coins it holds (GRAM is the new name of Toncoin, the coin of the Telegram-linked blockchain) were worth less at Sept 30 than at June 30. Unrealized means revalued, not sold.
TON Strategy (Nasdaq: TONX) is a listed company whose main asset is that coin. The quarter in plain numbers:
- Revenue $13.1M, mostly staking rewards (coins earned for helping run the network)
- Operating income about $4.0M, up from about $0.5M the quarter before
- Paper loss on GRAM: $27.2M
- Net loss: $23.97M
One quarter earlier the same paper line added $82.8M. Same company, same coins, opposite sign.
By my math, it holds about 235.1M GRAM worth $348.5M, so a 1% move in GRAM is about $3.5M. That is close to the whole quarter's operating income. The coin's price writes the headline, whatever the business does.
Even revenue follows the price. It earned about 9.4M GRAM, like the quarter before, but revenue fell from $15.0M to $13.1M as GRAM got cheaper (per Crypto Briefing). The stock still rose 2.4% on results day (per ChainCatcher).
What are different scenarios?
- If GRAM ends the next quarter above its Sept 30 level (about $1.48 by my math), the same line turns into a gain
- If it ends below, expect another paper loss, whatever the staking income
What to note?
- Split the headline: operating income first, paper moves second
- For any coin-holding company, the coin is the biggest line
- Staking pays in the coin, so income shrinks when the price falls
Net loss or operating income, which line do you read first?
Experience, not financial advice. $GRAM
#TONStrategyReports$23.97MQ3NetLoss
