Interactive Strength Wipes Out FET Bet, Puts Common Shareholders Last
Interactive Strength, a company that issued $50 million in senior secured convertible exchangeable notes backed by FET tokens, has liquidated its entire crypto treasury and satisfied the original FET-backed notes. The move erased a $50M bet on the token and pushed common shareholders to the back of the line.
The company's 2025 annual report revealed that it had liquidated all digital assets by December 31, 2025, satisfying the original FET-backed notes through token sales and separate remainder notes. The balance sheet showed a working-capital deficit of $22.4 million, with cash standing at $4.738 million.
On July 28, Interactive Strength paid a dividend to preferred shareholders in the form of 619,584 new preferred shares, which preserved cash while expanding the company's preferred share count. This move put $1.239 million of minimum base liquidation preference ahead of common holders.
The new preferred shares, known as Series A and C, carry significant equity priority and accrued dividends. Each series starts with a $2 original issue price, adjusted for recapitalizations, and compounds annual dividends at 8% (Series A) and 15% (Series C). The combined tab comes to $1,239,168 of minimum base preference, plus roughly $146,487 for a full first year before compounding.