Stablecoin Development Corporation Reports $2.2M Staking Revenue and $41.1M Net Loss for Q2 2026

Stablecoin Development Corporation, formerly known as NovaBay Pharmaceuticals, Inc., reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2026. The company generated $2.2 million in staking revenue during the second quarter, marking its first revenue from staking activities, as it had not previously engaged in digital asset holdings. However, the company also faced a substantial unrealized loss of $50.6 million on its digital assets, primarily due to fluctuations in the market price of its core holding, SKY tokens. This resulted in a net loss from continuing operations of $41.1 million for the quarter, compared to a loss of $1.9 million in the same period last year.

In terms of operational changes, the company underwent a significant transformation, including a corporate name change and a shift in focus towards digital assets. The January 2026 Private Placement raised approximately $134 million, which included $25 million in cash and $109 million in SKY tokens and stablecoins. This capital has been pivotal in establishing the company's digital asset treasury strategy. As of June 30, 2026, Stablecoin Development held 2.29 billion SKY tokens, representing about 10% of the total supply, with a fair value of $119.2 million, accounting for approximately 94% of the company's total assets.

The company also reported a notable increase in general and administrative expenses, which rose to $5.4 million from $1.9 million year-over-year, largely due to stock-based compensation and increased costs associated with its transition to a digital asset-focused business model. Additionally, the company successfully eliminated its warrant liabilities by exercising all outstanding October 2025 Pre-Funded Warrants on a cashless basis, which simplified its capital structure and reduced future non-cash adjustments related to warrant fair value.

Looking ahead, Stablecoin Development Corporation's management believes that its existing cash and cash equivalents, along with the potential to monetize a portion of its SKY holdings, will be sufficient to meet operational needs for at least the next twelve months. The company retains access to its ATM Program, with approximately $84.5 million available for issuance, which will support future acquisitions of digital assets. However, the company acknowledges that its ability to fund growth and meet obligations will depend on market conditions and access to capital on favorable terms.