Oct 5, 2026, 8:05 AM ETHealthcare

Stablecoin Development Corporation — Q3 2026 Earnings Summary

SDEVSTABLECOIN DEVELOPMENT CORP

Financial Performance

Generated $4.7 million in staking revenue during the six months ended June 30, 2026, including $2.2 million in the second quarter.
Received approximately $134.0 million in aggregate gross proceeds from the January 2026 Private Placement, consisting of $25.0 million in cash and approximately $109.0 million in SKY tokens and stablecoins.
Approximately $83.2 million remained available under the $100.0 million at-the-market (ATM) offering program as of September 30, 2026.
No specific figures for total revenue, net income, profit margins, cash flow, deferred revenue, or debt are disclosed in the text.

Strategy focuses on acquiring and holding a portfolio of select digital assets with revenue-generating characteristics, with SKY currently being the only approved asset.
Anticipates holding digital assets for extended periods to participate in protocol-level economics and potential capital appreciation.
Plans to periodically monetize a portion of holdings for general corporate purposes, including tax position management.
Evaluates opportunities to generate liquidity or financing referenced or collateralized by assets held, including SKY.
Continues to invest in internal capabilities and third-party relationships for transacting, settling, accounting for, and safeguarding SKY.
Strategy execution is subject to market conditions, risk limits, commercial opportunities, and regulatory, legal, and tax considerations.

Primary strategic objective is to acquire SKY tokens using cash in excess of operating requirements.
Held 2,286,511,374 SKY as of June 30, 2026 (approx. 10% of total supply) and approximately 2,321,910,691 SKY as of October 2, 2026 (approx. 10% of total supply).
As of January 16, 2026, held approximately 943.6 million SKY.
SKY is the sole asset approved for investment and staking; the company does not engage in short-term speculative trading, margin transactions, or derivatives.
The Sky Protocol generates revenue from borrowing fees and other economic activity, funding open-market buybacks of SKY allocated to staking participants and the protocol surplus buffer.
SKY token supply is capped at approximately 23.46 billion tokens; circulating supply was approximately 23.38 billion as of October 2, 2026.

SKY market capitalization was approximately $2.0 billion as of October 2, 2026.
30-day average daily trading volume for SKY was approximately $18.6 million as of October 2, 2026.
Coinbase Exchange is the principal market used by the Company for fair-value measurement.
Other trading venues include Kraken, Crypto.com, KuCoin, MEXC, and decentralized exchanges via CoW Protocol.
The Sky Protocol evolved from MakerDAO, with USDS and DAI supply exceeding $10 billion as of June 30, 2026.
Six Ranked Delegates collectively held approximately 97.4% of delegated voting power as of October 2, 2026, with the two largest holding approximately 64.4%.

Ownership concentration: R01 Fund LP and Framework Ventures IV L.P. beneficially owned approximately 87.6% of outstanding Common Stock as of September 18, 2026.
Dilution risk: Exercise of January 2026 Pre-Funded Warrants could increase outstanding shares from 51,751,359 (as of Oct 2, 2026) to approximately 219.3 million.
Governance concentration: A small number of delegates and holders control a substantial portion of SKY supply, potentially influencing protocol outcomes adverse to the Company.
Execution risks: Transactions may be subject to front-running, and reported trading volumes may include wash trading or manipulative activity.
Operational risks: Security failures at trading venues (e.g., Coinbase, Kraken) or the Sky Protocol ecosystem could result in loss of assets or impaired liquidity.
Regulatory risks: Evolving legal and regulatory frameworks across jurisdictions may affect trading venues, custodians, and access to services.
Accounting volatility: Changes in market value and protocol participation may result in volatility in financial results.

Management views long-term ownership of digital assets as providing exposure to blockchain-based financial infrastructure and protocol-level economics.
The Company believes its operational structure (transacting for own account, using regulated venues and qualified custodians) reduces exposure to money-laundering and sanctions risks.
Management maintains discretion to reduce staked amounts to meet liquidity needs, manage risk, or execute dispositions.
The Investment Advisory Committee (IAC) provides strategic guidance and risk oversight, with the CEO serving as Chairperson.
Management emphasizes that historical staking reward rates are not indicative of future rates.

January 2026 Private Placement: Completed on January 16, 2026, involving pre-funded warrants for 167,539,227 shares in exchange for cash and SKY/stablecoins.
Custody Arrangements: Substantially all SKY is held in self-custody via Fireblocks MPC infrastructure and deployed in Sky Protocol staking smart contracts; Kraken Financial serves as the qualified custodian for residual balances.
Staking Activity: The Company earns staking rewards in SKY, recognized as revenue at fair value when earned; rewards are funded by protocol revenue, not inflationary emission.
Delayed Upgrade Penalty: A penalty on legacy MKR conversions reduces SKY issuance; the current rate is 5% (effective September 2026), reducing the conversion rate from 24,000 SKY per MKR to 22,800 SKY per MKR.
Investor Rights: The Sky Frontier Foundation and two other Purchasers hold board nomination rights and consent rights over material amendments to the digital asset strategy.
No Monetization to Date: The Company has not monetized any SKY tokens as of the filing date.
No Related-Party Trading: No affiliate or related party has acted as an execution provider for the Company.