FRMO (OTCMKTS:FRMO) management used its fiscal 2026 second-quarter earnings webinar to address a delayed filing, recent balance sheet changes tied to a real estate transaction, and the firm’s current positioning in cryptocurrency mining and exchange-related investments.
Delayed filing tied to tax-liability recalculation
Chief Executive Officer Murray Stahl opened the call by apologizing for the delayed filing and, as a result, the delayed shareholder meeting. Stahl said the delay stemmed from a dispute over what the company’s tax liability “might be if we were to sell certain securities,” which required a recalculation. He added that the company is already past the February quarter end and expects to hold another meeting in roughly six weeks to discuss February results, noting that the tax figure could differ again because the market value of assets has changed.
Real estate sale leaves company debt-free; new Syntech stake
According to Stahl, FRMO took the remaining proceeds in Syntech stock, resulting in a “small interest” in Syntech. He described Syntech as a company involved in supporting both the cryptocurrency industry and the “emerging data center industry.”
Mining approach: emphasis on Scrypt and Winland ownership
Stahl said the company is not exiting mining, but has increasingly preferred to conduct mining activity through a publicly traded company called Winland. He stated FRMO currently owns approximately 45% of Winland and noted that if FRMO crosses the 50% ownership threshold, it would consolidate Winland and FRMO’s financial statements would “have a different look and character.”
He also pointed to FRMO’s balance sheet line for “Digital mining assets,” which he said showed a “de minimis” figure of about $31,000, reflecting that the company has not bought mining rigs “in a little while.”
On digital assets, Stahl said FRMO did not purchase digital assets during the quarter, but that comparing the cost basis between May and December showed an increase of roughly $36,000, representing assets mined during the six-month reporting period. He emphasized that the “cost” reflects the market value on the day the assets were mined, not the company’s actual production cost, and used the $36,000 mined figure against $31,000 of equipment as a way to discuss the importance of mining asset longevity.
Stahl said that over the last year and a half to two years FRMO has confined new mining equipment purchases to “Scrypt” mining, which he described as merged mining of Litecoin and Dogecoin. In his explanation, FRMO keeps the Litecoin and sells Dogecoin, using proceeds to cover electricity and to buy Bitcoin.
He contrasted Dogecoin and Bitcoin economics, noting that Dogecoin has no “halving,” while Bitcoin’s block reward is reduced by 50% every four years. Stahl said preparing for Bitcoin’s halving is central to mining economics, but argued many participants do not prepare or even discuss it. He estimated the next halving would occur around April 18, 2028, and said that roughly two years before a halving the market can become disrupted as miners seek to finance new equipment, often by selling accumulated Bitcoin.
Liquidity and borrowing capacity
Stahl said FRMO has no debt and characterized the company as potentially the most liquid it has ever been. He added that FRMO has “a lot of borrowing power” that it has “really have never used,” though it could if needed.
Exchange investments: MIAX IPO and tokenization viewed as supportive
Stahl also discussed FRMO’s exchange-related investments, emphasizing MIAX. He said MIAX went public in the summer and described the IPO as “extremely successful,” resulting in a markup in value. He traced MIAX’s origins to FRMO’s prior holdings in the Minneapolis Grain Exchange and the Bermuda Stock Exchange, which were merged in exchange for an interest in MIAX. Stahl said FRMO has other small exchange investments but is “largely” in MIAX, and he encouraged investors to follow the company’s progress.
In the Q&A, Stahl argued that tokenization is not a threat to exchanges, calling it “one of the greatest things that could ever happen to exchanges.” He said markets still require intermediaries and rules-based systems to ensure counterparties are legitimate and to deter disruptive behavior such as spoofing. He also said exchanges and similar entities are needed to collect and pool aggregate market data and to provide monitoring that supports market integrity.
Asked for an update on MIAX holdings, Stahl cited a table on the company’s website as of November 30 showing 935,202 restricted shares and 11,441 publicly available shares, totaling roughly 946,000 shares. He said he would need to review whether warrants were included, and noted that the warrants are in the money.
Altcoin views: anonymity limits and Litecoin’s liquidity
Responding to a question comparing Zcash, Litecoin, and broader anonymity trends, Stahl said fully anonymous cryptocurrency use is “diametrically opposed” to broad global adoption, citing concerns including taxation and government rules around currency usage.
On Litecoin, Stahl pointed to what he described as significant blockchain-measured transaction volume, citing data from BitInfoCharts. He said Bitcoin’s last-24-hour volume was about $18.7 billion, while Litecoin’s was about $10 billion, against what he described as Litecoin’s market capitalization of $4.2 billion. He said Litecoin has “more or less the same monetary policy as Bitcoin” and is not “really anonymous,” though it may have a subset with anonymity features.
Stahl suggested Litecoin’s liquidity could support potential use cases tied to 24/7 markets and near-instant settlement, including as a “redundant device” for tracking or settlement as markets move toward continuous trading and stablecoins grow as a payment modality. He contrasted Litecoin’s volume with Dogecoin’s, which he said was about $161 million in the same period, and stated Litecoin’s volume was, in his view, unusually high relative to other cryptocurrencies.
Bitcoin “synthetic supply” dismissed
Stahl rejected the idea that Bitcoin is no longer a fixed-supply asset because of synthetic supply, calling the view “ridiculous.” He said derivatives such as futures and options are bets on Bitcoin’s future price and are not Bitcoin itself, reiterating that Bitcoin supply is fixed at roughly 21 million, with “almost 20 million” already in existence.
Other Q&A: Abaxx and share-count mechanics
Asked about Abaxx Technologies, Stahl described it as a commodity exchange based in Singapore that recently commenced trading and has seen volume rise from a low base, including in gold and natural gas. He said it could potentially emerge as a rival to the Multi Commodity Exchange of India, but stressed it was too early to tell. He added he had not bought any, and said it appeared to have a market capitalization of about $1.4 billion, though he wanted to verify share count assumptions.
On a question about differing diluted share counts between three- and six-month periods ending the same date, Stahl attributed the difference to director compensation options. He said when the stock price rises and options are in the money, they can increase fully diluted shares; when the price falls and options are out of the money, they effectively drop out of the diluted share calculation.
Closing the call, Stahl said the company expects to hold another meeting in roughly six weeks and invited shareholders to submit additional questions in the interim.
About FRMO (OTCMKTS:FRMO)
FRMO Corporation (OTCMKTS:FRMO) is a diversified holding company based in Bloomfield Hills, Michigan. The company seeks long-term capital appreciation by acquiring, incubating and supporting a range of businesses and investments across public equities, private ventures, commercial real estate and special situations. With a flexible investment mandate, FRMO allocates capital to sectors and asset classes it considers undervalued or poised for future growth.
Through its wholly owned subsidiaries and strategic partnerships, FRMO’s portfolio spans multiple industries, including software and technology services, digital media, consumer products and real estate development.
