Streamex (NASDAQ:STEX) reported a wider third-quarter loss as it sought to expand distribution of its tokenized gold product, GLDY, through retirement accounts, an institutional fund and a planned on-chain product.
The financial technology company posted a net loss of $17.5 million, or $0.09 per share, compared with a loss of $0.08 per share in the second quarter. GLDY income was $145,000 for the quarter, while adjusted EBITDA was a loss of $7.2 million.
Co-founder and CEO Henry McPhie said GLDY assets under management were about $14 million at market value, up 12% during the quarter. Outside ownership more than doubled to 17.7% as of Sept. 30, he said.
Expenses Rise, but Cash Burn Target Remains
Third-quarter operating expenses climbed $2.8 million from the prior quarter to $18.1 million. CFO Christine Plummer said $2.2 million of the increase came from higher noncash stock-based compensation, which totaled $9.3 million for the quarter. The remaining increase was mainly attributable to external legal counsel and product development costs.
GLDY income of $145,000 compared with a reported $146,000 in the second quarter. Plummer said the earlier figure included $12,000 related to the first quarter, making lease income growth approximately 8% on a comparable basis.
Operating cash burn averaged about $1.5 million a month in the third quarter, down from $1.6 million in the second quarter but above the company’s $1.1 million target. Plummer attributed the gap mainly to legal and marketing costs tied to product development.
Streamex is targeting monthly cash burn of $1.1 million to $1.3 million from the fourth quarter through 2027. Plummer stressed that the range was a target, not a forecast. The company is also reviewing strategic alternatives for its PURE EP patent portfolio and considering other measures, including monetizing some of its GLDY holdings.
Liquidity Includes Gold Reserves
Streamex ended September with no debt and reported $36.5 million in total liquidity, down from $41.8 million at the end of June. That figure included $13.2 million in immediately available cash, marketable securities and stablecoins; $6.8 million accessible under near-term agreement terms; and $16.5 million of physical gold carried at cost as reserve inventory backing GLDY.
Plummer said the gold’s market value at Sept. 30 was approximately $14 million, or $2.5 million below its carrying amount. Working capital fell to $22 million from $32.8 million at the end of June.
Since quarter-end, the company invested $6 million of GLDY reserves in Metalayer’s Digital Fund I, which has T+2 redemption, Plummer said. She said the move brought immediately available liquidity to about $19.2 million.
GLDY Distribution and Institutional Demand
GLDY ended the quarter with 3,351 ounces of gold, up from 3,111 ounces at the end of the prior quarter, McPhie said. The product had made seven consecutive monthly distributions in gold, and its reserves were independently attested by EisnerAmper, he said.
GLDY is expected to go live on Equity Trust’s IRA platform the week after the call. McPhie said it would be the first tokenized asset on the platform. Streamex has not issued formal guidance for how much funding it expects from IRA accounts, he said in response to an analyst’s question.
An institutional investment manager also launched a fund that uses GLDY as the long position in a gold carry strategy. McPhie said an initial $1 million investment from an institutional investor had already been funded and that the company expected additional inflows. The strategy pairs a long gold position with short futures or perpetual contracts to reduce exposure to gold price movements.
Asked about the revenue model, McPhie said Streamex earns a 1% management fee from GLDY’s lease yield, a 25-basis-point fee on an initial direct purchase and a 10-basis-point fee when the asset changes hands. He did not provide a fixed assets-under-management figure needed for operating cash-flow break-even, saying the result would depend on several factors.
Cask Launch and Next Steps
The independent Cask Foundation has begun bootstrapping liquidity for USGY, an on-chain gold yield vault, and expects to launch it publicly once that process is complete, McPhie said. The product targets a 10.1% annual percentage yield and is not available to U.S. persons. Streamex said a subsidiary serves the foundation and earns servicing revenue but does not issue its products.
Cask plans to launch USGY before GLDC, a planned gold token backed by GLDY. McPhie said Cask expects to launch GLDC in early 2027 as USGY scales.
For the next 90 days, management’s commitments include attracting more institutional capital, completing USGY’s initial liquidity bootstrapping, funding the first Equity Trust IRA accounts and reducing cash burn. McPhie said the company would report progress on those goals in February.
About Streamex (NASDAQ:STEX)
Streamex Corp. is a financial technology company focused on blockchain-based financial infrastructure and the tokenization of real-world assets. Its business is centered on developing digital platforms designed to connect traditional financial products with blockchain networks. The company’s activities include creating and supporting digital assets, blockchain applications and tokenized investment products. Streamex has described its work as serving institutional and other market participants seeking greater efficiency, transparency and accessibility in digital-asset markets.
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