IP Strategy Transitions Validator Operations to Custodied Staking to Enhance Yields and Security

• IP Strategy transitioned its validator operations to a custodied, long-term staking configuration in December 2025 to increase blended staking yields while maintaining institutional-grade custody and security. This move is expected to enhance operational efficiency and scalability for the Story ecosystem.

• The company reported staking 39.9 million unlocked $IP tokens, generating cumulative validator rewards of 913,569.39 $IP tokens, worth approximately $4.68 million as of December 31, 2025. The estimated blended yield of 5.64% on staked tokens could generate around 2.25 million $IP tokens annually.

• IP Strategy's validator has maintained near-perfect uptime since its launch on September 18, 2025, contributing to the security and transaction validation of the Story network. This dual revenue model—self-staking yield generation and commission income from third-party delegations—creates a sustainable and scalable income stream.

What is the Impact on IP Strategy's Financial Performance?

IP Strategy's validator business is a core revenue driver, generating on-chain yield through transaction validation and commission income from third-party delegations. As of December 31, 2025, the company estimates that its staked tokens could generate approximately $3.78 million in illustrative potential annualized revenues at a token price of $1.68, with fixed costs estimated at $400,000–$500,000. This business model is expected to provide a scalable, recurring revenue stream with gross margins above 90%.

The transition to a custodied long-term staking model is expected to boost validator earnings and improve gross margins over time. The company also earns commission income from third-party delegators, offering external $IP token holders a secure staking environment.

How Does This Affect the Story Ecosystem and Its Investors?

IP Strategy's validator has played a key role in the security and transaction validation of the Story network. The company's validator has maintained 99.98% uptime in December 2025 and has cumulatively earned 913,569.39 $IP tokens in rewards since its launch.

As the Story ecosystem grows, the company expects increased staking participation and transaction volume, which should further strengthen its revenue base and long-term value proposition. The dual revenue model is expected to be highly margin accretive and directly tied to the growth of the Story ecosystem.

What Are the Key Metrics and Projections?

IP Strategy projects that the 39.9 million staked $IP tokens could generate approximately 2.25 million $IP tokens annually, assuming a blended yield of 5.64%. This would equate to approximately $3.78 million in illustrative potential annualized revenues at a token price of $1.68.

The company plans to continue releasing validator and ecosystem updates monthly to maintain transparency for stockholders and disclose ongoing performance metrics for its validator operations. The transition to a custodied long-term staking configuration is expected to increase blended staking yields and gross margins.

With gross margins estimated to be above 90%, this self-staking validator business is expected to provide a scalable, recurring revenue stream and strengthen IP Strategy's balance sheet. The company's validator business is positioned to capture additional growth as staking participation expands.