Strengthened Capital Position and Accelerating Path to Revenue
NEW YORK, May 13, 2026 /PRNewswire/ — Canton Strategic Holdings, Inc. (NASDAQ: CNTN) (“Canton Strategic Holdings” or the “Company”), the first publicly traded company to leverage Canton Coin (CC) to support the Canton Network’s ability to digitize traditional financial markets, today announced its financial and operating results for the first quarter 2026 ended March 31, 2026.
“We are pleased with the significant operational progress in the first quarter 2026 as we advance institutional adoption of the Canton Network while driving shareholder value,” said Mark Wendland, Chairman and Chief Executive Officer of Canton Strategic Holdings. “Importantly, we have laid the groundwork for several revenue drivers, including through the launch of our first commercial token locking solutions in April and our commitment to the network as a Super Validator.”
Strategic Highlights
In Q1 2026, the Company achieved the following milestones:
Secured approval to operate as a Super Validator on the Canton Network, enabling the Company to help secure network transactions while accruing CC rewards that bolster its digital asset treasury.
Closed $55 million underwritten registered offering of common stock and pre-funded warrants, providing additional growth capital for the continued expansion of the Company’s Canton-centric digital asset treasury strategy.
Strengthened leadership team with the appointment of Mark Wendland as Chairman of the Board in addition to his role as the Chief Executive Officer, bringing decades of trading and treasury operations experience at major trading firms to oversee the Company’s digital asset strategy.
Bolstered Board of Directors with the appointments of former CFTC Commissioner Jill Sommers and DRW Chief of Staff William Wiley, bringing deep regulatory and institutional trading expertise to oversight of the Company’s strategy.
Joined the Canton Foundation Board to help shape the Canton Network’s governance framework, tokenomics, and strategic roadmap.
Momentum continued into April, as the Company delivered on its commitment to produce a comprehensive quarterly analysis of onchain activity and network development, publishing a whitepaper and producing a live webinar featuring Canton Network experts. The production and distribution of these reports and webinars results in the continuation of the Company’s ability to earn rewards as a Super Validator on the Canton Network.
Additionally, following the approval of CIP-0105, Canton Strategic Holdings developed commercial locking solutions that provide an important service to Super Validators. CIP-0105 requires Super Validators to lock 70% of the CC they have earned in rewards, dating back to the first rewards earned on the network, resulting in a strengthened incentive structure across participants on the network. The Company launched its first commercial locking solutions in April, enabling Super Validators to actively lock a percentage of their aggregate lifetime earned rewards to earn forward Super Validator weight while generating yield and revenue-sharing opportunities for the Company.
Finally, the Company earned a significantly increased Super Validator weight following the Canton Foundation’s approval of Canton Improvement Proposal (“CIP”)-0114, which rewards digital asset treasury companies that commit to long-term holdings of Canton Coin.
“In the first quarter, we strengthened our balance sheet through several capital markets transactions totaling $90.4 million, including a registered direct offering and execution on our at-the-market offering. These transactions supported our continued acquisition of CC, both directly as well as through an increased Super Validator weight that became effective in April through CIP-0114,” said Mark Toomey, President. “As the Canton ecosystem continues to mature, we expect to identify new opportunities for revenue generation through and beyond our treasury strategy, evidenced by the innovation we are driving in our locking solutions.”
First Quarter 2026 Financial Summary
The following highlights reflect the Company’s financial results for the first quarter 2026 ended March 31, 2026, encompassing both its digital asset strategy and its existing clinical-stage biotech research and development operations.
CC Treasury Holdings: As of March 31, 2026, the Company held 3,677,150,850 CC with a fair value of $541,569,363.Balance Sheet: As of March 31, 2026, the Company had $41.5 million in cashRevenue: The Company has not recognized revenue since inception, reflecting its stage of development as a digital asset treasury company.Operating Expenses: Total operating expenses were $36.9 million compared to $2.5 million in the comparable prior year period, primarily driven by increased SG&A costs related to the Company’s transition to a Canton-focused digital asset treasury strategy.Digital Asset Valuation: The Company recorded an unrealized loss on digital assets of $15.0 million, reflecting the difference between the reference price of CC as of March 31, 2026 and the weighted average cost of accumulated CC holdings.Net Loss: Net Loss was $47.3 million or ($0.23) per diluted share, compared to a loss of $2.5 million or ($0.99) per diluted share, in the first quarter of 2025. The Company has an accumulated deficit of $120.2 million as of March 31, 2026, and has funded its operations primarily through the sale of equity securities.Adjusted EBITDA: Excluding the impact of stock-based compensation expenses, unrealized loss on digital asset holdings, and income tax provision (benefit), adjusted EBITDA was $4.3 million, as compared to $2.3 million in the first quarter of 2025.
2026 Strategy
As the Company continues to execute on its digital asset strategy, it intends to strengthen its capital base and drive value through a diversified approach:
Canton Network Ecosystem Development: The Company is committed to expanding partnership opportunities, both through direct investment in ecosystem builders as well as ongoing engagement with institutions as they adopt blockchain technology.Value Accretion through Mobilization of CC Holdings: We believe new opportunities to drive increased value from the Company’s CC holdings will emerge, including in the lending, options, and vault markets.Disciplined Expense Management: The Company intends to implement a streamlined cost structure, prioritizing the most value accretive initiatives and reducing expenses.
CANTON STRATEGIC HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS (Unaudited)
March 31, 2026
December 31, 2025
ASSETS
Current assets
Cash and cash equivalents
$ 41,532,140
$ 17,032,748
Prepaid expenses and other current assets
1,553,110
353,318
Deferred offering costs
-0-
-0-
Total current assets
43,085,250
17,386,066
Digital assets
541,569,363
501,760,369
Total assets
$ 584,654,613
$ 519,146,435
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable
$ 402,311
$ 1,090,274
Accrued expenses
739,033
2,196,090
Total current liabilities
1,141,344
3,286,364
Other liabilities
Deferred tax liability
113,713,951
117,934,191
Total liabilities
114,855,295
121,220,555
Commitments and contingencies (see Note 8)
Stockholders’ equity
Preferred stock, $0.0001 par value, 10,000,000 shares authorized, no shares
issued and outstanding as of December 31, 2025 and December 31, 2024
-0-
-0-
Common stock, $0.0001 par value, 1,000,000,000 shares and 250,000,000 shares authorized, 37,112,466 shares
and 1,973,999 shares issued and 37,112,220 shares and 1,973,753 shares outstanding
as of December 31, 2025 and December 31, 2024, respectively
5,665
3,711
Additional paid-in capital
590,024,159
470,809,478
Accumulated deficit
(120,160,541)
(72,817,344)
Treasury stock, at cost, 246 shares held in treasury
as of December 31, 2025 and December 31, 2024
(69,965)
(69,965)
Total stockholders’ equity
469,799,318
397,925,880
Total liabilities and stockholders’ equity
$ 584,654,613
$ 519,146,435
CANTON STRATEGIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
For the Three Months Ended March 31,
2026
2025
Operating expenses
Research and development
$ 267,823
$ 594,070
General and administrative
36,600,488
1,952,599
Total operating expenses
36,868,311
2,546,669
Loss from operations
(36,868,311)
(2,546,669)
Other income (expense)
Interest expense
(8,471)
Interest income
318,178
13,436
Unrealized loss from digital assets holdings
(15,013,304)
–
Total other income (expense), net
(14,695,126)
4,965
Total loss before income taxes
(51,563,437)
(2,541,704)
Provision (benefit) for income taxes
(4,220,240)
–
Net loss
$ (47,343,197)
$ (2,541,704)
Net loss per share:
Basic and diluted
$ (0.23)
$ (0.99)
Weighted average number of common shares outstanding:
Basic and diluted
207,705,905
2,572,715
CANTON STRATEGIC HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
For the Three Months Ended March 31,
2026
2025
Cash flows from operating activities:
Net loss
(47,343,197)
$ (2,541,704)
Adjustments to reconcile net loss to net cash
used in operating activities:
Unrealized loss from digital assets holdings
15,013,304
-0-
Deferred tax expense/(benefit)
(4,220,240)
-0-
Stock based compensation
32,259,757
219,179
Increase in operating assets:
Prepaid expenses and other current assets
(1,199,792)
(423,103)
Increase in operating liabilities:
Accounts payable
(687,963)
63,003
Accrued expenses
(1,457,057)
(6,376)
Net cash used in operating activities
(7,635,188)
(2,689,001)
Cash flows from investing activities:
Purchase of digital assets
(54,822,298)
-0-
Net cash used in investing activities
(54,822,298)
-0-
Cash flows from financing activities:
Proceeds from issuance of common stock upon
registered direct public offerings
54,894,300
-0-
Proceeds from issuance of common stock upon
at-the-market offerings
35,526,308
-0-
Proceeds from exercise of common stock warrants
94,711
-0-
Payment of deferred offering costs and other issuance costs
(3,558,441)
-0-
Proceeds from insurance premium financing liability
-0-
308,924
Repayment of insurance premium financing liability
-0-
(60,325)
Repayments of note payable
-0-
(43,031)
Net cash provided by financing activities
86,956,878
205,568
Net increase (decrease) in cash
24,499,392
(2,483,433)
Cash, beginning of period
17,032,748
3,559,361
Cash, end of period
41,532,140
$ 1,075,928
Cash paid for interest expense
8,471
Supplemental disclosure of non-cash financing activities:
Issuance of note payable for settlement of previously incurred professional fees
314,485
Issuance of options to settle liability
200,212
Non -GAAP Measures of Financial Performance
In addition to financial measures presented under generally accepted accounting principles in the United States of America (“GAAP”), the Company evaluates performance using non-GAAP financial measures such as “Adjusted total loss before income taxes.”
The Company defines Adjusted EBITDA as net income (loss), excluding income tax provision (benefit), stock-based compensation expense, unrealized gains or losses on digital asset holdings, and other non-recurring items. Management believes this financial measure provides a performance measurement that reflects our recurring core business operations. Adjusted EBITDA is provided in addition to, and should not be considered a substitute for, GAAP financial measures.
Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP. For example, we expect that share-based compensation expense, which is excluded from certain of the non-GAAP financial measures below, will continue to be a significant recurring expense over the coming years and is an important part of the compensation provided to certain employees, officers, and directors.
The following table reconciles Adjusted EBITDA to net loss, its most directly comparable GAAP measure, (in thousands) for the periods indicated.
CANTON STRATEGIC HOLDINGS, INC.
RECONCILIATION OF GAAP NET LOSS TO NON-GAAP ADJUSTED EBITDA
For the Three Months Ended March 31,
2026
2025
Net loss
$ (47,343,197)
$ (2,541,704)
Stock based compensation (1)
32,259,757
219,179
Unrealized loss from digital assets holdings
15,013,304
–
Provision (benefit) for income taxes
(4,220,240)
–
Adjusted EBITDA
$ (4,290,376)
$ (2,322,525)
(1) For the three months ended March 31, 2026, Stock based compensation included $32,228,509 of expense related to Strategic Advisor warrants and Advisor RSUs which were issued in connection with the November 2025 PIPE transaction and were recognized by the company in Q1 upon approval of shareholders at the special meeting of January 30, 2026.
About Canton Strategic Holdings, Inc.
Canton Strategic Holdings, Inc. (NASDAQ: CNTN), is the first publicly traded company to leverage Canton Coin and support the Canton Network to advance institutional blockchain adoption and the digitization of financial markets. In addition to driving value through activities on the Canton Network, the Company also operates clinical-stage biotech research and development. For more information, visit www.cantonstrategic.com.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, which may constitute “forward-looking statements” within the meaning of the U.S. federal securities laws. Such statements include, but are not limited to, goals and expectations regarding the Company’s strategy and potential partnerships, future financial and operating performance, projections or statements of plans and objectives, and other statements accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words, but the absence of these words does not mean that a statement is not forward-looking.
These forward-looking statements are based on current expectations, estimates, assumptions, and projections, and involve known and unknown risks, uncertainties, and other factors—many of which are beyond the Company’s control—that may cause actual results, performance, or achievements to differ materially from those expressed or implied by such statements. Important factors that may affect actual results include, among others, the Company’s ability to execute its growth strategy; its ability to raise and deploy capital effectively; ability to raise capital through on the Company’s at-the-market offering; developments in technology and the competitive landscape; the market performance of Canton Coin; government regulation of cryptocurrencies; and other risks and uncertainties described under “Risk Factors” in the Company’s Annual Report on Form 10-K and in other filings with the SEC. These filings are available at www.sec.gov. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
CONTACT
Media:
Gasthalter & Co.
(212) 257-4170
canton@gasthalter.com
Investors:
ir@cantonstrategic.com
X: @CantonStrategic
LinkedIn: Linkedin.com/CantonStrategicHoldings
Website: www.cantonstrategic.com
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SOURCE Canton Strategic Holdings, Inc.
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