Stablecoin Development Corporation Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Stablecoin Development Corporation (NYSE American: SDEV) reported second quarter 2026 staking revenue of $2.2 million and first-half 2026 staking revenue of $4.7 million, generated from staked SKY tokens in the Sky Protocol ecosystem. Q2 results included a $50.6 million non-cash unrealized loss on digital assets and an operating loss of $53.8 million, leading to a Q2 net loss of $41.1 million.
As of June 30, 2026, SDEV held 2.29 billion SKY tokens (about 10% of total supply) with a fair value of $119.2 million and cost basis of $147.2 million; substantially all were staked. The company reported cash and equivalents of $7.0 million, total liabilities of $0.3 million, no debt, and stockholders’ equity of $127.2 million. SDEV completed a cashless exercise of October 2025 pre-funded warrants, eliminating warrant liabilities after issuing 22.6 million shares, relocated its headquarters to West Palm Beach to reduce fixed costs, and reported that its cash operating expenses of approximately $2.2 million in Q2 were approximately equal to staking revenue.
Positive
- Q2 2026 staking revenue $2.2 million; H1 2026 $4.7 million
- SKY holdings 2.29 billion tokens (~10% supply) worth $119.2 million at June 30, 2026
- Cash operating expenses about $2.2 million in Q2 2026, approximately covered by staking revenue
- Balance sheet strength: $7.0 million cash, $119.2 million digital assets, only $0.3 million liabilities, no debt
- Warrant liabilities eliminated via cashless exercise of October 2025 pre-funded warrants on 22.6 million shares
- Subsequent SKY valuation about $128.0 million as of July 27, 2026, with price ~7% above June 30 reference
Negative
- Q2 2026 operating loss $53.8 million, driven by $50.6 million non-cash unrealized loss on digital assets
- Q2 2026 net loss $41.1 million, or $1.32 per basic and diluted share
- SKY fair value below cost basis: $119.2 million vs $147.2 million at June 30, 2026
- Share dilution from issuance of 22,614,600 shares upon cashless warrant exercise in June 2026
- Additional dilution potential from January 2026 pre-funded warrants first tranche exercisable for up to ~33.5 million shares
News Explained
SDEV still holds SKY rather than cash, while up to 33.5 million warrant shares could dilute holders if exercised.
The July 31 release reports that, as of
The release also says staking rewards are paid in SKY, so its statement that staking revenue covers cash operating expenses becomes cash only if the company sells those tokens; it reports no SKY sales.
Separately, the first 20% tranche of the January 2026 pre-funded warrants became exercisable on
A pre-funded warrant converts into shares when exercised, so exercise of that tranche would increase share count and reduce an existing holder’s percentage ownership, but the disclosed amount is a ceiling rather than a completed issuance.
The
Key Figures
Previous Crypto,earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 20 | Q1 earnings report | Positive | -1.9% | Reported operating income and net income, but the stock’s 24-hour reaction was negative. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The tag-matched Q1 earnings release was followed by a -1.94% 24-hour reaction despite reported operating income and net income, indicating divergence on earnings news.
Key Terms
staking rewards technical
mark-to-market financial
pre-funded warrants financial
cashless exercise financial
non-GAAP financial measure financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Staking revenue of
$2.2 million for the quarter and$4.7 million for the first half of 2026 - SDEV grew its SKY position to 2.29 billion tokens (approximately
10% of total SKY supply) and eliminated all remaining warrant liabilities from its balance sheet
WEST PALM BEACH, Fla., July 31, 2026 (GLOBE NEWSWIRE) -- Stablecoin Development Corporation (NYSE American: SDEV) (the “Company” or “SDEV”), an on-chain holding company focused on long-duration participation in protocol-aligned digital asset ecosystems and providing public market access to the stablecoin economy, yesterday reported financial results for the second quarter and first half ended June 30, 2026. The Company filed its Quarterly Report on Form 10-Q with the Securities and Exchange Commission on July 30, 2026.
For the second quarter of 2026, the Company reported staking revenue of
“In the second quarter we continued to build our position in what we believe is one of the most attractive on-chain ecosystems in digital finance, generating
Second Quarter 2026 Highlights
- Staking revenue of
$2.2 million . Staking revenue was$2.2 million for the quarter and$4.7 million for the first half of 2026, reflecting rewards earned on the Company’s staked SKY holdings within the Sky Protocol ecosystem. - Second quarter GAAP results reflect a non-cash mark-to-market. The Company reported an operating loss of
$53.8 million in the second quarter, driven by a$50.6 million non-cash unrealized loss on digital assets measured at fair value. No SKY tokens were sold during the quarter; the loss reflects the decline in the market price of SKY and does not affect the Company’s cash position or operations. - Grew the SKY position to 2.29 billion tokens. Held 2,286,511,374 SKY tokens as of June 30, 2026, representing approximately
10% of total SKY supply, with a fair value of$119.2 million and a cost basis of$147.2 million ; the position grew during the period through both open-market purchases and staking rewards. - Earned 31.7 million SKY in staking rewards. Received 31,746,251 SKY tokens as staking rewards during the quarter, bringing cumulative staking rewards to 67,132,900 SKY tokens; substantially all of the Company’s holdings remained staked in the Sky Protocol.
- Simplified the capital structure. Completed the cashless exercise of all outstanding October 2025 Pre-Funded Warrants on June 15, 2026, eliminating all remaining warrant liabilities from the balance sheet.
- Reduced fixed costs. Relocated the Company’s principal executive offices to West Palm Beach, Florida, and terminated its legacy California office lease, lowering the Company’s ongoing occupancy costs.
A summary of the Company’s SKY holdings as of July 27, 2026 appears under “Subsequent Events” below.
Second Quarter 2026 Financial Results
Staking revenue was
Unrealized loss on digital assets. The Company recognized a non-cash unrealized loss on digital assets of
General and administrative expenses were
Net income (loss). Net loss for the second quarter of 2026 was
SKY Holdings and Staking Activity
As of June 30, 2026, the Company held 2,286,511,374 SKY tokens, representing approximately
Since the closing of the January 2026 Private Placement, SDEV has acquired approximately 1.3 billion additional SKY tokens through open-market purchases at an average price of approximately
Balance Sheet and Capital Structure
As of June 30, 2026, the Company had cash and cash equivalents of
On June 15, 2026, the Company completed the cashless exercise of all outstanding October 2025 Pre-Funded Warrants, issuing an aggregate of 22,614,600 shares of common stock and eliminating the last remaining warrant liability from its balance sheet. Together with the reclassification of the January 2026 Pre-Funded Warrants to stockholders’ equity upon stockholder approval in March 2026, the Company had no warrant liabilities outstanding as of June 30, 2026.
Subsequent Events
SKY Holdings Summary (as of July 27, 2026). Subsequent to June 30, 2026 and through July 27, 2026, the Company continued to earn staking rewards on its SKY holdings and did not purchase, sell or otherwise dispose of any SKY tokens. As of July 27, 2026, the Company held approximately 2,296,167,180 SKY tokens, representing approximately
Warrant exercisability. On July 16, 2026, the first tranche, representing
Relocation of principal offices. Effective July 1, 2026, the Company relocated its principal executive offices from Emeryville, California to 222 Lakeview Ave, Suite 800, West Palm Beach, Florida 33401. The relocation, which followed the early termination of the Company’s legacy Emeryville office lease on June 30, 2026, eliminates the Company’s prior operating lease obligation and reduces its fixed cost base.
Sky Protocol Ecosystem Update
The Sky Protocol ecosystem, through which the Company’s SKY holdings generate staking rewards, continued to grow during the second quarter of 2026. Selected Sky Protocol ecosystem metrics, as reported by Sky Ecosystem Insights for the periods indicated, include the following¹:
- Protocol revenue at a record run-rate. The Sky Protocol reported an annualized gross protocol revenue run-rate of approximately
$419 million , based on the most recent three monthly settlement cycles, ranking it among the highest-revenue on-chain applications. - Net protocol surplus turned positive. Preliminary second-quarter 2026 results showed approximately
$29.9 million in net protocol surplus remitted to Sky reserves, compared to a negative$8.2 million in the second quarter of 2025, on gross protocol revenue of approximately$107.4 million , up approximately10.5% year over year. - Growing solvency reserves. Sky reserves reached approximately
$82.5 million as of June 30, 2026, or approximately55% of the protocol’s$150 million reserve target. - Scaled stablecoin supply. USDS supply reached approximately
$10.0 billion as of June 30, 2026, up approximately97% year over year, with cumulative yield accrued to sUSDS holders through the Sky Savings Rate surpassing$250 million since inception.
Non-GAAP Financial Measures
This press release refers to cash operating expenses, a non-GAAP financial measure that represents the Company’s general and administrative expenses excluding non-cash stock-based compensation. The most directly comparable GAAP measure is general and administrative expenses. For the three months ended June 30, 2026, general and administrative expenses were
This non-GAAP measure has limitations as an analytical tool, is not calculated in accordance with GAAP, and should not be considered in isolation from, or as a substitute for, the Company’s GAAP results. In addition, this non-GAAP measure may not be comparable to similarly titled measures reported by other companies. Staking rewards are received in the form of SKY tokens; accordingly, the coverage of cash operating expenses by staking revenue described in this press release is realized in cash only to the extent the Company monetizes such tokens. The Company did not sell any SKY tokens during the periods presented.
About the Sky Protocol
Sky Protocol is a decentralized finance platform that evolved from MakerDAO, one of the earliest and most established projects in the digital asset ecosystem. The protocol enables the creation and use of USDS, a decentralized stablecoin designed to maintain a soft peg to the U.S. dollar, and serves as foundational financial infrastructure for lending, savings, and on-chain capital markets. SKY is the governance token of the Sky Protocol ecosystem. The protocol generates revenue from borrowing fees and other economic activity, a portion of which is used to fund open-market buybacks of SKY tokens that are distributed to staking participants. SKY has a fixed total supply of approximately 23.5 billion tokens. For more information, visit info.skyeco.com.
Channels for Disclosure of Information
The Company intends to announce material information to the public through filings with the SEC, the investor relations page of its website (www.stabledev.com), press releases, public conference calls, public webcasts, its X (Twitter) account (@StableDev), and its LinkedIn page. The information disclosed through the foregoing channels could be deemed to be material information. The Company encourages investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels.
About Stablecoin Development Corporation
Stablecoin Development Corporation (NYSE American: SDEV) is an on-chain holding company focused on long-duration participation in protocol-aligned digital asset ecosystems and providing public market access to the stablecoin economy. The Company’s initial digital asset focus is the Sky Protocol ecosystem, with SKY as its core holding. Through staking and other on-chain activities, the Company seeks to generate protocol-level economic exposure while maintaining governance, risk management, and public-company discipline. The Company is headquartered in West Palm Beach, Florida. For more information, please visit www.stabledev.com.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the Company’s strategy and capital allocation; its plans to hold, stake, and potentially monetize SKY tokens and other digital assets; the sufficiency of staking revenue to cover operating costs; the market value of the Company’s SKY holdings as of dates subsequent to quarter-end; the anticipated recognition of changes in fair value in future periods; its views regarding the stablecoin economy and related infrastructure; the variability of staking rewards and protocol governance parameters; its intentions regarding future SKY token acquisitions; and statements regarding the Sky Protocol ecosystem, including protocol revenue, surplus, reserves and stablecoin supply metrics. These statements are based on management’s current expectations and involve known and unknown risks and uncertainties, including risks related to the volatility of digital asset markets (including the price of SKY, which may decline substantially from the levels described herein), the concentration of the Company’s assets in a single digital asset, regulatory developments, changes in protocol governance parameters, cybersecurity and custody risks, the impact of non-cash fair value adjustments on reported results, the liquidity of SKY tokens and potential market impact of large transactions, limitations on the Company’s ability to access the capital markets, and the other risks described in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the SEC. Actual results may differ materially. SDEV undertakes no obligation to update forward-looking statements except as required by law.
Company Contact
Tommy Law
Chief Financial Officer
tommy@stabledev.com
¹ Sky Protocol ecosystem data referenced in this press release, including protocol revenue, net surplus, reserve, and USDS supply figures, are derived from Sky Ecosystem Insights (financial.skyeco.com) and other publicly available, unaudited, third-party sources, and are preliminary and subject to revision pending the final Sky Ecosystem Q2 2026 report. These figures relate to the Sky Protocol, which the Company does not control, have not been independently verified by the Company, and are subject to change. They are provided for informational context only and should not be relied upon as representations of the Company.
