EX-99.1

2 ex99-1.htm

EX-99.1

Exhibit 99.1

Canton Strategic Holdings, Inc. Releases Second Quarter 2026 Financial and Operational Results

Records first operating revenue from locking service and Super Validator operations

Completes sale of legacy biotechnology subsidiary Gravitas

NEW YORK, August 14, 2026 — Canton Strategic Holdings, Inc. (Nasdaq: CNTN) (“Canton Strategic” or the “Company”), the first publicly traded company to leverage Canton Coin (“CC”) to support the Canton Network’s ability to digitize traditional financial markets, today released financial and operating results for the second quarter ended June 30, 2026.

“We are pleased to see our disciplined strategy and operational focus pay off with meaningful operating revenue recognized in the second quarter,” said Mark Wendland, Chairman and Chief Executive Officer of Canton Strategic Holdings. “Since launching our strategy in November 2025, we have taken a diversified approach to value accretion, seeking opportunities to capitalize on commercial ventures that align with our long-term conviction in the Canton Network’s ability to transform financial markets.”

During the quarter, the Company recorded its first operating revenue, reflecting the initial contribution from its Super Validator operations and its locking-as-a-service (“LaaS”) offering on the Canton Network, establishing the Company’s base of revenue generating business operations. Notably, its LaaS offering drove revenue of approximately $1.3 million (see “Other Revenue” in financial tables below). This offering, launched in April 2026, supports Super Validators and Featured Applications who are required under Canton Improvement Proposals (“CIP”) 0105 and CIP-0116 to maintain locked CC balances. Through this service, the Company locks its own CC on a customer’s behalf while retaining legal and beneficial ownership, and is compensated through a stated interest rate, a share of the customer’s network rewards, or an equity grant earned over the contract term, depending on the arrangement.

Separately, the Company’s Validator and Super Validator operations drove $191,226 in revenue during this quarter, representing CC rewards earned for providing validation and liveness services to the network.

“Our Super Validator and locking-as-a-service operations reflect the active role we intend to play as the network scales, supporting the builders and validators driving institutional adoption of blockchain infrastructure,” continued Wendland. “Our growing operating business, alongside our Canton Coin treasury, gives shareholders a differentiated way to gain exposure to the network’s adoption, rather than passive exposure to a single token.”

Quarterly Highlights (as of June 30, 2026)

●Secured approval for an expanded Super Validator weight of 15 under CIP-0102 and CIP-0114. Active minting at 0.5 weight began in May 2026, with the remaining 14.5 weight scheduled to unlock in tranches through the first quarter of 2028 as the Company meets specific deliverables and receives approval from the Canton Foundation’s Accountability Committee. Importantly, a higher weight indicates a proportionally larger claim on the CC minted to Super Validators.

●Launched its first commercial offering, locking-as-a-service (“LaaS”), to Canton Network Super Validators and Featured Applications. This model compensates the Company via a daily interest rate on locked CC, a share of network rewards, or an equity grant earned over a one-year term.

●Recognized revenue through diversified income streams, including $1,304,633 largely from its LaaS program, as well as $191,226 from its Network validation activities, for the three months ended June 30, 2026, the Company’s first quarter generating revenue under its digital asset treasury strategy.

●Streamlined its operations through the sale of Gravitas Life Sciences, Inc. (“Gravitas”), the Company’s legacy clinical-stage biotechnology subsidiary, on July 17, 2026, in exchange for an unsecured promissory note in the original principal amount of $3,500,000 bearing 15% payment-in-kind interest, plus contingent development milestone payments.

●Strengthened its governance through the election of Sean Galvin, Pamela L. Carter, and Rishi Nangalia as directors at the Company’s 2026 annual meeting on July 13, 2026. Mr. Galvin, Ms. Carter, and Mr. Nangalia collectively bring deep experience across financial markets, public company oversight, and technology to the Company’s Board.

●Created optionality for opportunistic share repurchases through Board approval of a $50 million share repurchase program on June 11, 2026; no shares were repurchased under the program during the period.

●Canton Coin holdings of 3,714,204,876 units with a fair value of $523,353,752, up from $501,760,369 as of December 31, 2025

●Cost basis of CC holdings of $584,064,579 as of June 30, 2026, compared to $523,770,731 as of December 31, 2025

●Cash and cash equivalents of $37,241,568 as of June 30, 2026, up