IP Strategy Scraps $15 Million Credit Facility to Curb Shareholder Dilution

GIG HARBOR, WA – December 29, 2025 – In a decisive move to bolster shareholder confidence and strengthen its financial standing, IP Strategy (Nasdaq: IPST) announced today the termination of its $15 million Equity Line of Credit (ELOC). The digital intellectual property (DIP) company, a pioneer for being the first public entity to build its treasury around the $IP token, stated the cancellation was effective as of the market close on December 22, 2025.

The agreement, originally established on January 23, 2025, provided the company with the option to sell shares to raise capital. By canceling it, IP Strategy removes a significant potential source of stock dilution, a common concern for investors in publicly traded companies. The company confirmed that no further sales were executed under the facility prior to its termination.

“As we look at the needs of our business going forward, and to assure the market that we are not intent on further dilutive instruments at this time, we feel that the continued effectiveness of the ELOC is not in the best interest of our stockholders,” explained Justin Stiefel, Chief Executive Officer and Board Chairman of IP Strategy, in the official announcement.

This action is a strong signal to the market that management believes in the company's current financial trajectory and its ability to fund operations and growth without resorting to financing mechanisms that could devalue existing shares.

A Strategic Shift to Core Operations and Digital Assets

The cancellation of the ELOC is not an isolated event but rather a key part of a broader corporate strategy. IP Strategy is redirecting its focus toward its core revenue-generating activities and fortifying its unique balance sheet. The company currently holds a substantial treasury of 53.2 million $IP Tokens, the native digital asset of the Story blockchain network.

This move underscores the company's commitment to its primary mission: operating as a public market vehicle for exposure to the burgeoning programmable intellectual property economy. Instead of relying on traditional equity financing, IP Strategy is concentrating on growing its high-margin validator work. As a validator on the Story Protocol, the company plays a crucial role in securing the network and processing transactions, earning rewards in the process. This creates a direct revenue stream tied to the activity and health of the underlying blockchain ecosystem.

Alongside this focus on validator revenue, the company is actively working to reduce and eliminate long-term operating expenses. By trimming costs and growing a high-margin business line, IP Strategy aims to achieve sustainable profitability and enhance stockholder value organically. The decision to forgo the $15 million credit line suggests confidence that these internal initiatives, combined with its significant digital asset holdings, provide a sufficient foundation for its near-term objectives and future growth opportunities.

Riding the Momentum of the Story Ecosystem

IP Strategy's financial health and strategic direction are intrinsically linked to the success of Story, the AI-native blockchain network that powers the $IP token. Recent developments within the Story ecosystem provide a favorable backdrop for IP Strategy's latest move. Story is reportedly closing 2025 with significant progress across its infrastructure, data handling, and real-world adoption of programmable intellectual property.

A recently released year-end ecosystem recap from Story highlighted major network milestones, protocol upgrades, and expanding participation from a diverse group of creators, developers, and data providers. This growing activity is critical, as it directly translates into more transactions on the network, increasing the potential revenue for validators like IP Strategy. Furthermore, a thriving ecosystem can drive demand for the $IP token, potentially increasing the value of the 53.2 million tokens held in IP Strategy's corporate treasury.

Story, which has garnered an impressive $136 million in backing from top-tier venture capital firms including a16z crypto, Polychain Capital, and Samsung Ventures, provides the fundamental infrastructure for registering, licensing, and monetizing intellectual property in real time. Its focus on AI-native applications positions it at the intersection of two of the most powerful trends in technology today. As more intellectual property moves onto the blockchain for transparent tracking and monetization, the value proposition of both the Story network and, by extension, IP Strategy is expected to grow.

A New Model for Public Market Investment

IP Strategy represents a novel approach for public market investors. The company, which operates under the registered corporate name Heritage Distilling Holding Company, Inc., has pivoted to become the first Nasdaq-listed firm to use a digital token as a primary reserve asset. This allows traditional equity investors to gain exposure to the promise of the $80 trillion programmable IP economy through a regulated, publicly traded stock (IPST) without directly purchasing or holding cryptocurrency.

The termination of the ELOC reinforces this model. By prioritizing the reduction of shareholder dilution and focusing on strengthening its balance sheet through operational efficiency and its digital asset holdings, IP Strategy is maturing its financial strategy. This move demonstrates a commitment to building long-term, sustainable value based on the performance of its core business and the growth of the Story ecosystem, rather than short-term capital infusions that can erode investor equity. This disciplined approach may well set a precedent for other public companies looking to integrate digital assets into their corporate strategies.