TON Strategy's Staking Rewards Outpaced by Cash Burn

TON Strategy earned $15 million in staking rewards from Gram tokens during the second quarter. The company's operations, however, burned through $10.6 million in cash during the same period.

The staking revenue was largely due to an April upgrade, known as Catchain 2.0, which increased the number of blocks produced per second on the TON blockchain. This increase resulted in more tokens being issued to validators, leading to higher rewards for TON Strategy's Gram holdings.

As of June 30, TON Strategy held 230.5 million Gram and had 229.9 million staked, representing approximately 4.4% of the total supply and about 35% of all staked Gram. The company attributed its substantial token rewards to this upgrade, but noted that sustained cash generation requires the tokens to retain their value in the face of changing network conditions.