StablecoinX has restructured $6.879 million in defaulted notes left over from its former SPAC, paying roughly $344,000 in cash and issuing two tranches of warrants that could convert into about 7.62 million Class A shares. The deal pushes about $6.535 million of near-term repayment pressure away from the company's cash reserves and into a claim on future equity.
The warrant structure
Under the terms, 5% of the note balance is payable in cash. The remaining 95% splits evenly: 47.5% goes to Tranche A warrants issued at a $1 value, and 47.5% goes to Tranche B warrants at a $0.75 value. The warrants become exercisable on Sept. 20, 30 days after issuance. Tranche A carries an $11.50 exercise price and expires June 25, 2031. Tranche B has a $15 exercise price and runs until Aug. 21, 2034.
The potential warrant pool equals about 31.7% of StablecoinX's 24.029 million Class A shares outstanding as of Aug. 12. The warrants are non-redeemable and include cashless-exercise rights while held by the former sponsors or permitted transferees.
Where the debt came from
The obligations date back to StablecoinX's business combination with TLGY Acquisition Corporation, a SPAC that brought a liability into the capital structure of the Ethena-linked company. The notes were held by TLGY Sponsors LLC, CPC Sponsor Opportunities I LP and CPC Sponsor Opportunities I (Parallel) LP. Those three holders waived the payment default under an Aug. 5 term sheet before signing definitive agreements on Aug. 21.
StablecoinX reported $18.856 million of cash at June 30, so the $344,000 cash component represents just 1.8% of that balance. The company could have covered the full note amount, but instead chose to preserve liquidity and give the holders a shot at future upside.
The stock is well below the strike
There's a catch. USDE shares closed Aug. 24 at $6.27, far below both warrant strike prices. That means the warrants are deeply out of the money right now. The sponsors would need the stock to climb significantly before either expiry to make exercise worthwhile.
The warrants are non-redeemable, so they won't be called away. That gives the holders time to wait for a rally, but also leaves the company with a large overhang of potential dilution if the share price ever reaches those levels.
Ethena connection and the treasury
StablecoinX holds Ethena's ENA token as a treasury asset, but those holdings are restricted and exposed to market prices. The company hasn't said how much ENA it holds or what that exposure does to its cash position. With the restructuring done, the immediate question is whether the stock ever climbs to $11.50 or $15 before 2031 and 2034.
