GIG HARBOR, Wash., Oct. 31, 2025 (GLOBE NEWSWIRE) -- Heritage Distilling Holding Company Inc. d/b/a IP Strategy (Nasdaq: IPST) (the “Company”), the first company to adopt a treasury reserve policy centered on the $IP token, today announced that its Board of Directors has approved a 1-for-20 reverse stock split of the Company’s common stock. The reverse stock split is expected to become effective at 12:01 a.m. on November 5, 2025, and the Company’s common stock is expected to begin trading on the Nasdaq Capi ...

Core Insights - The company has launched its validator business on the Story Network, generating $1.5 million in staking rewards from $IP tokens within the first two weeks of operation [1][2][3] Group 1: Validator Business Overview - The validator business allows the company to stake $IP tokens directly, avoiding third-party fees and maintaining control over security and performance [2][3] - The company self-staked 43.5 million unlocked $IP tokens and earned nearly 165,000 $IP tokens in rewards, valued at approximately $1.5 million [2][3] - The estimated blended yield for staking is around 6%, potentially generating 3.2 million $IP tokens annually, equating to about $28.5 million in potential annual revenues [3] Group 2: Revenue Streams and Profitability - The validator business is expected to have gross margins above 95%, providing a scalable and recurring revenue stream [3] - The company plans to onboard third-party participants to stake their $IP tokens, creating additional revenue through commissions [4] - The company anticipates significant expansion of its staking activities in the coming months [5] Group 3: Strategic Positioning - The validator business positions the company at the center of the programmable IP economy, aligning the growth of $IP token value with shareholder value creation [6][7] - The transition to a digital asset treasury strategy has strengthened the company's financial position, adding over 53.2 million $IP tokens to its balance sheet [7] - The company aims to provide public market investors with exposure to the $80 trillion programmable intellectual property economy through its treasury reserve of $IP tokens [8]

Core Viewpoint - The company is rebranding as "IP Strategy" to focus on accumulating $IP tokens, the cryptocurrency of the Story Network, and will change its Nasdaq ticker symbol from "CASK" to "IPST" effective September 22, 2025 [1][5]. Group 1: Rebranding and Strategic Shift - The rebranding reflects the company's evolution into a public-market vehicle centered on the $80 trillion intellectual property economy, particularly in artificial intelligence [1][9]. - IP Strategy is the first Nasdaq-listed company to adopt a treasury reserve strategy focused on $IP tokens, aiming to connect public market investors with this emerging asset class [1][9]. Group 2: Shareholder Approval and Financing - At a special meeting on September 18, 2025, shareholders approved all proposals related to a private placement financing transaction, indicating strong confidence in the company's vision [2][3]. - Key measures approved include a potential reverse stock split and an increase in authorized shares from 495 million to 995 million, providing flexibility for growth initiatives and compliance with Nasdaq requirements [2][3]. Group 3: Financial Highlights - The recent private placement financing raised $223.8 million, which included $95 million in cash and $128.8 million in $IP tokens, while eliminating $19.3 million in debt [4][5]. - The company now holds over 53.2 million $IP tokens valued at approximately $731 million based on a closing price of $13.72 as of September 21, 2025 [4][5]. Group 4: Market Position and Future Outlook - With a debt-free balance sheet and substantial $IP treasury, the company is positioned at the intersection of AI, blockchain, and intellectual property, offering a regulated equity-based gateway for investors [7][9]. - The company plans to provide further details on yield-generating mechanisms and has launched a new website featuring a real-time Treasury Dashboard for investors [6][8].

Core Points - The company will change its ticker symbol from "CASK" to "IPST" on September 22, 2025, with no action required from current stockholders [1][2] - The new ticker reflects the company's strategic focus on its $IP token treasury strategy and the $80 trillion intellectual property economy [2][3] - The company aims to provide public market investors exposure to the programmable IP economy through its new treasury reserve vehicle centered on the $IP token [3] Company Strategy - The $IP token treasury strategy is designed to offer a regulated, equity-based path for investors to participate in the growth of the media, brands, and AI training data sectors without directly holding crypto [2][3] - Additional details regarding the company's strategy and the results of its recent Special Meeting of Stockholders will be released on September 22, 2025, before market open [2]

Core Insights - Grayscale has launched the Grayscale Story Trust, providing investors exposure to the $IP token of the Story network, which focuses on programmable intellectual property [1][5]. Company Overview - Grayscale is the world's largest digital asset-focused investment platform, enabling investors to access the digital economy through various investment products [13]. Industry Context - The Story network is designed to transform intellectual property into programmable on-chain assets, addressing the needs of the AI era and the creator economy [2][3]. - The global intellectual property economy is estimated to be worth as much as $80 trillion, highlighting the significant market potential for platforms like Story [2][12]. Adoption and Usage - Story has seen rapid adoption with over 1.7 million intellectual property transactions and more than 200,000 monthly users, indicating strong demand for its infrastructure [4]. - The platform supports various real-world applications, including partnerships with major artists and AI systems, showcasing its transformative potential [4]. Product Details - The Grayscale Story Trust is open for daily subscription by accredited investors and is solely invested in the $IP token, similar to Grayscale's other single-asset investment trusts [6].