IP Strategy Transitions Validator Operations to Long-Term Staking, Boosting Yields

• IP Strategy transitioned validator operations to a custodied, long-term staking configuration in December 2025 to enhance blended staking yields and maintain institutional-grade custody and security .
• The dual revenue model, which includes self-staking yields and commission income from third-party delegations, is projected to generate highly margin-accretive income with gross margins over 90%.
• As of December 31, 2025, IP Strategy had staked 39.9 million $IP tokens, generating 913,569.39 $IP in validator rewards.

IP Strategy's validator operations are a core part of its business, generating on-chain yield by validating transactions and securing the Story Network. The transition to custodied, long-term staking is expected to improve yields and reinforce institutional-grade custody, security, and operational resilience .

The company's dual revenue model is designed to create a sustainable and scalable income stream. By leveraging both self-staking and commission income from third-party delegations, IP Strategy can benefit from expanding network participation and validator activity.

What is the dual revenue model?

The dual revenue model combines self-staking yields and commission income from third-party delegations. This approach allows IP Strategy to generate income from both its own staked tokens and from delegations by third-party token holders.

Self-staking yields are derived from the company's own staked $IP tokens, while commission income comes from the validator services it provides to other token holders. This dual approach creates a diversified and scalable income source.

How does this affect investor value?

The dual revenue model supports a highly margin-accretive and recurring revenue stream, with gross margins expected to exceed 90%. This high margin profile is critical for long-term financial stability and balance sheet strength.

The transition to custodied, long-term staking is expected to increase validator earnings and margins in subsequent periods. This is due to the projected blended yield of 5.64% on staked $IP tokens, which is estimated to generate 2.25 million $IP tokens annually.

What are the projected financials and risks?

IP Strategy's validator operations are expected to generate approximately $3.78 million in potential annualized revenues, assuming a token price of $1.68 and fixed costs of $400,000–$500,000. These metrics are based on the projected blended yield and the number of staked tokens.

However, the revenue projections are dependent on token price and network performance. If the token price or network activity declines, the actual revenues and yields may differ from the estimates.

The company has staked 39.9 million $IP tokens, generating approximately $4.68 million in revenue based on recognized cost basis as of December 31, 2025. This demonstrates the current scalability and resilience of the validator business model.

With the transition to long-term staking, IP Strategy is positioning itself for sustained growth and financial stability. The dual revenue model, combined with institutional-grade custody and security, is expected to support a scalable and recurring income stream that strengthens the company's balance sheet.