Ip Strategy Holdings, Inc. operates a diversified business centered on digital asset–based infrastructure and intellectual property management, supplemented by a legacy craft spirits operating segment. The company actively deploys its substantial holdings of $IP Tokens to generate yield through validator operations on the Story Network, while also managing a streamlined spirits business focused on wholesale distribution, direct-to-consumer sales, and expansion of its Tribal Beverage Network.

The company generates revenue primarily through staking rewards and execution layer rewards from its validator nodes on the Story Network, where it earns gas fees and additional $IP Token rewards for proposing and validating blocks. It also earns commissions from third-party delegations of $IP Tokens to its validator node and generates monthly yields from selling covered call options on a portion of its $IP Token holdings. Additionally, revenue is derived from the production, marketing, licensing, and sale of award-winning craft whiskeys and flavored spirits through its Heritage Distilling Company subsidiary.

The company operates through the following segments: IP Management Infrastructure and Craft Spirits.

• IP Management Infrastructure: This segment involves operating validator nodes on the Story Network to stake $IP Tokens and earn staking and transaction fee rewards. The company runs its own validator services rather than delegating tokens to third parties, maintaining control over its staking operations. At December 31, 2025, approximately 81.8% of the $IP Tokens in its treasury were staked, with plans to increase this to at least 90% over time.

• IP Management Infrastructure: The company generates additional revenue by selling 30-day covered call options on a portion of its $IP Token holdings, earning monthly yields averaging approximately 4% (nearly 60% annually on a compounded basis). It also earns a 5% commission on staking rewards from third parties that delegate $IP Tokens to its validator node. These activities are designed to maximize the productivity of its digital asset treasury while maintaining exposure to $IP Token appreciation.

• Craft Spirits: This segment includes the production, marketing, licensing, and sale of super-premium whiskeys and premium-flavored whiskeys under owned and licensed brands such as 1st Special Forces Whiskey & Salute Series, Flavored Bourbon, Cocoa Bomb, and Stiefel’s Select Aged Whiskey. The company has received numerous awards including multiple “World’s Best Flavored Whiskey” recognitions from Whiskey Magazine in London and various national honors.

• Craft Spirits: The company focuses its spirits strategy on wholesale distribution through major national wholesalers including Southern Glazer’s Wine & Spirits and Republic National Distributing Company, direct-to-consumer sales via a three-tier-compliant platform reaching 46 states, and expansion of its Tribal Beverage Network (TBN) through licensing and royalty agreements with Native American tribes. It has transitioned to third-party contract production to reduce fixed overhead and improve gross margins.

In the digital asset space, Ip Strategy Holdings, Inc. positions itself as one of the largest corporate holders of $IP Tokens, actively using its holdings to support network security and generate yield through validator operations. Its competitive advantages include its substantial $IP Token treasury, in-house validator infrastructure, and strategic partnerships with custodians like Crypto.com, BitGo, and Kraken, which enhance staking yield and operational resilience.

The company serves institutional and retail participants in the digital asset ecosystem through its validator services, including third parties that delegate $IP Tokens to its node for staking rewards. In the craft spirits segment, its customers include wholesale distributors, direct-to-consumer buyers via its e-commerce platform, and tribal nations participating in the Tribal Beverage Network, where it provides branded products and receives royalties on gross sales.