USBC Posts $4.94 Million in Third-Quarter Profit After $12.35 Million Loss
Key Facts
USBC reported net income of $4,944,823 for the three months ended September 30, 2026, compared with a net loss of $12,350,204 in the same period of 2025, according to a company filing with the U.S. Securities and Exchange Commission. The reversal reflected noncash gains from changes in the fair value of digital assets, the filing said. But the company generated no operating revenue during the first nine months of the year. At the same time, it recorded an operating loss of $14,791,066 for the quarter, setting the digital-asset gain against business costs and operating losses. The company said expected future revenue would come from fintech network services, including its planned tokenized deposit program.
Selling, general and administrative expenses totaled $14,791,066 in the third quarter, up from $11,523,571 a year earlier. USBC said $2.3 million of quarterly expenses were related to development of the tokenized deposit program. That included $1.9 million under agreements with related service providers, according to the filing. Professional fees, general corporate costs and consulting totaled $1.8 million. The company also recorded a net derivatives loss of $3,329,651, a credit-loss provision of $924,563 and income tax expense of $1,366,932.
For the nine months ended September 30, 2026, the company recorded a net loss of $41,398,520, compared with a loss of $17,457,841 in the same period of 2025. It recorded no operating revenue in either period, the filing said. In the first half of 2026, USBC recorded an unrealized loss of $29.7 million from changes in the fair value of digital assets, as part of a net loss of $46.3 million. The difference between the third-quarter result and the first-half result reflects the effect of changes in digital-asset valuations across periods. The company said changes in Bitcoin's price could result in material noncash gains or losses in each period.
As of September 30, USBC held about $82.7 million in digital assets, compared with $3.5 million in cash and cash equivalents. A total of 479 Bitcoin, with a fair value of $40.1 million, was pledged as collateral for $21 million in outstanding borrowings. In an amendment to the financing agreement on October 12, the borrowing limit rose from $25 million to $40 million, with additional borrowing capacity of $19 million on that date, subject to borrowing and collateral conditions. The company said it expects to need additional near-term liquidity sources to fund its operating revenue shortfall and continue program development. Sources it cited may include equity or debt financing, Bitcoin sales, borrowing against Bitcoin, or financing from related parties and investors.
Management said it believes the company has sufficient resources to meet its obligations for at least 12 months after the financial statements are issued, with cash potentially supplemented by sales of digital assets or other financing. In June 2026, USBC completed the first phase of its tokenized deposit program development strategy and began the second phase. That phase aims to expand testing and prepare for an initial commercial launch, subject to pilot results and bank and regulatory approvals. The company designated the third phase for an initial launch through selected distribution partners, and the fourth for expanding marketing with additional functionality, integrations and distribution channels. The filing did not specify a public launch date, which remains subject to regulatory and operational factors and banking partners.
USBC shares closed at $0.37 on November 6, 2026, according to EL7 data. The filing did not specify a date for the tokenized deposit program's public commercial launch. The company linked expected future revenue to fintech network services covered by the program. It said its near-term need for additional liquidity coincides with continued development of the program. It also warned that changes in Bitcoin's price could result in material noncash gains or losses in future-period results.