Interactive Strength Drops FET Treasury Amid Shareholder Woes

Interactive Strength recently completed the liquidation of its crypto treasury, which once held a significant position in FET tokens. The company originally established this treasury through a $50 million convertible note deal. By the end of 2025, the firm had sold off its digital assets to satisfy the debt tied to those tokens. While the FET pledge is now gone, the move leaves the company facing a difficult financial outlook.

To manage its remaining capital, the company issued a dividend consisting of over 600,000 preferred shares in late July. This action creates $1.239 million in minimum liquidation preferences. Because preferred stock ranks ahead of common equity, common shareholders now sit further back in the line should the company face further liquidation. The Series C shares in particular carry a 15% compounding dividend, adding more pressure to the balance sheet.

The firm is currently navigating a period of financial stress, reporting a significant working capital deficit and raising doubts about its status as a going concern. With limited unrestricted liquidity, the focus has shifted toward debt management rather than crypto investment. Investors should watch how the company handles its remaining notes and its ability to maintain operational cash flow in the coming months.