Interactive Strength issued a preferred stock dividend on July 28, 2026, adding $1.239 million in liquidation preference ahead of common shareholders. The dividend, consisting of 619,584 preferred shares, came after the company fully liquidated its FET token treasury by the end of 2025.
The preferred stock dividend breakdown
The dividend included 281,344 Series A shares and 338,240 Series C shares. After the distribution, total preferred shares outstanding stood at 4,696,089 Series A and 3,187,097 Series C. Series A shares increased by 6.37% and Series C by 11.87%.
Series A shares carry an $2 original issue price, an 8% cumulative annual dividend, and rank above common stock but below Series C. Series C shares also have a $2 original issue price, a 15% cumulative annual dividend, and rank above Series A, Series B, and common stock.
The new Series A shares added $562,688 of base preference and about $45,015 of first-year dividend accrual. The new Series C shares added $676,480 of base preference and about $101,472 of first-year dividend accrual. Combined, the total minimum base preference from the dividend is $1,239,168, plus approximately $146,487 for a full first year before compounding.
How the FET treasury was built and liquidated
Interactive Strength originally built its FET token treasury using $55.56 million of senior secured convertible exchangeable notes, sold for $50 million. Those notes carried a 10% original issue discount, 12% annual interest, and a lien over treasury assets.
The FET-backed notes were fully satisfied through token sales and separate remainder notes by the end of 2025. ATW and DWF received unsecured remainder notes of $3 million and $4.5 million respectively. As of the first quarter 2026 filing, the remainder notes had $7.5 million face principal but an accounting fair value of $4.538 million.
Cash crunch and going concern doubts
As of May 20, 2026, Interactive Strength had cash of $4.738 million against a $22.4 million working-capital deficit, and unrestricted liquidity of about $1.3 million. The company expressed substantial doubt about its ability to continue as a going concern.
Recent financing and reverse stock split
On July 21, 2026, an investor exercised a pre-existing warrant, leading Interactive Strength to issue a $2 million senior secured convertible note due July 2027, plus warrants for 305,810 common shares. The $2 million note's collateral description does not include FET tokens.
The company executed a 1-for-7 reverse stock split on June 30, 2026. However, the post-split conversion prices for the preferred shares were undisclosed in the July filing.
