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Interactive Strength liquidated its FET treasury, prioritizing preferred holders
The July 28 distribution paid 619,584 preferred shares and set aside a $1.239 million minimum base liquidation preference ahead of common holders.
Interactive Strength liquidated its crypto treasury of FET tokens in late 2025 and then used a July 2025 preferred-share dividend to preserve cash and change the liquidation priority for shareholders, according to a CryptoSlate review of company filings. On July 28, the company paid a dividend with 619,584 preferred shares, funding a $1.239 million minimum base liquidation preference ahead of common equity.
The company also filed an 8-K on July 31 breaking out 281,344 Series A shares and 338,240 Series C shares. Those issuances lifted Series A to 4,696,089 and Series C to 3,187,097, with Series A up 6.4% and Series C up 11.9% versus the counts immediately before the distribution.
CryptoSlate notes that preferred stock ranks ahead of common equity in liquidation, with each preferred series starting from a $2 original issue price adjusted for recapitalizations. Series A carries an 8% cumulative dividend annually, while Series C compounds at 15% and ranks ahead of Series A, Series B, and common stock, resulting in combined minimum base preference of $1,239,168 plus about $146,487 for the first full year before compounding.
The report also details the underlying FET-linked capital structure, saying Interactive Strength previously built its treasury with $50 million raised via senior secured convertible exchangeable notes with a 10% original issue discount, 12% annual interest, and a lien expected to cover custodied FET assets. By year-end 2025, the FET pledge had been liquidated and the original FET-backed notes were satisfied through token sales and separate remainder notes, leaving common dilution tied to undisclosed post-split conversion prices.