TON Strategy reported $15.019 million in staking revenue for the second quarter, but that wasn't enough to cover its operating cash needs in the first half of 2026. The company posted $83.535 million in pre-tax income from continuing operations, nearly all of it from an $82.8 million net fair value gain on its digital assets. Staking rewards climbed after the Catchain 2.0 upgrade, yet the financials still show a gap between what the firm earns from staking and what it spends to run the business.
The Catchain 2.0 effect
The jump in staking rewards traces back to a network upgrade. Catchain 2.0 cut the block interval from roughly 2.5 seconds to about 400 milliseconds, which works out to roughly 6.25 times more blocks per second. That's why TON Strategy received 9,438,177 Gram as staking rewards in Q2. The company's gross staking yield for the quarter came in at approximately 17% annualized.
Cash flow gap
Staking revenue didn't cover cash requirements in the first half. TON Strategy used $10.6 million in operating cash from continuing operations during H1 2026. The firm ended June with nearly $29 million in cash and restricted cash, and no debt. Operating income from continuing operations was just $479,000. The cash-flow reconciliation also deducted nearly $19 million of non-cash Gram consideration from net income, which helps explain the difference between the accounting income and the actual cash position.
The Gram position
As of June 30, TON Strategy held 230.5 million Gram, with 229.9 million of that staked. That's roughly 4.4% of the total supply and about 35% of all staked Gram. The company's holdings are managed and staked through dedicated pools run by BitGo and Blockchain.com.
The company hasn't said whether it expects staking revenue to eventually cover its cash burn. The Catchain 2.0 upgrade has clearly boosted rewards, but the first-half numbers show the gap remains. TON Strategy's next quarterly report will show whether the trend holds.
