How Interactive Strength erased a $50M FET token bet and sent common shareholders to the back of the line
Interactive Strength's crypto treasury of FET tokens was liquidated in late 2025. On July 28, the company paid a dividend with 619,584 preferred shares, preserving cash and putting $1.239 million of minimum base...
Bitcoin 1 Minute
An important story is making waves across the blockchain ecosystem. Interactive Strength's crypto treasury of FET tokens was liquidated in late 2025. On July 28, the company paid a dividend with 619,584 preferred shares, preserving cash and putting $1. 239 million of minimum base liquidation preference ahead of common holders.
An 8-K filed July 31 breaks out 281,344 Series A shares and 338,240 Series C shares. The issue lifted the outstanding totals to 4,696,089 Series A and 3,187,097 Series C. Compared with the counts immediately before the distribution, Series A grew 6.
Market Dynamics
Preferred stock ranks ahead of common equity in a liquidation. Each series starts with a $2 original issue price, adjusted for recapitalizations. Series A compounds an 8% cumulative dividend annually.
Series C compounds at 15% and ranks ahead of Series A, Series B, and common stock. The new Series A shares carry $562,688 of base preference and about $45,015 of first-year dividend accrual. Series C adds $676,480 and $101,472.
The combined tab comes to $1,239,168 of minimum base preference, plus roughly $146,487 for a full first year before compounding. Those amounts describe equity priority and accrued dividends. Cash generally changes hands only when the board declares a payment, except under the liquidation terms.
Market Impact
Related Reading One Bitcoin treasury’s paper loss just made Strategy’s stress everyone’s problem Strategy remains the center of STRC pressure, but Strive's disclosed holding turns preferred-stock discounts into a broader credit test for Bitcoin treasuries. Jul 8, 2026 Liam 'Akiba' Wright Common-share dilution has its own math. It turns on the conversion prices in effect after Interactive Strength's 1-for-7 common-stock reverse split on June 30.
The July filing leaves both post-split prices undisclosed. Stockholder-approval limits and 4. 99% ownership caps can also restrict issuance.
An exact common equivalent remains unknown. How the FET treasury unwound Interactive Strength built the crypto treasury with $55. 56 million of senior secured convertible exchangeable notes, sold for $50 million.
This shift continues to shape the digital-asset landscape, with analysts examining its near-term effects.
