How Interactive Strength erased a $50M FET token bet and sent common shareholders to the back of the line
Interactive Strength liquidated its FET crypto treasury by late 2025, and the FET pledge was gone by year-end. The original token-backed financing consisted of $55.56 million of senior secured convertible exchangeable notes sold for $50 million, but all digital assets were later sold to satisfy the notes, with ATW and DWF receiving unsecured remainder notes of $3 million and $4.5 million. On July 28, the company issued 619,584 preferred shares as a dividend, conserving cash but adding at least $1.239 million of liquidation preference ahead of common stock. That included 281,344 Series A shares and 338,240 Series C shares, increasing the outstanding totals by 6.37% and 11.87%, respectively. Series C ranks ahead of Series A and compounds at 15% annually; Series A compounds at 8%. The company remained financially strained, with low cash, a large working-capital deficit, and going-concern risk. A July 21 financing added a $2 million senior secured convertible note due in 2027, with no FET collateral.
