Key Takeaways
- From Treadmills to Tokens: Nasdaq-listed Interactive Strength (TRNR) plans to build a $500M AI-focused crypto treasury, starting with $55M in FET tokens.
- Desperate Move? TRNR stock has plummeted 99.8% over the past 12 months, with just $3.9 million in revenue against $34.9 million in losses in 2024.
- FET’s Rocky Road: Despite the hype, Fetch.ai’s token is down 50% in six months, and dipped 9% after the announcement.
- Fine Print Matters: The “$500M” plan hinges on optional convertible notes, with only $55M guaranteed upfront.
A Gym Company’s Crypto Hail Mary
Interactive Strength (TRNR), a fitness company known for high-end fitness machines like the $4,495 CLMBR, is ditching its dumbbells for digital assets. The company announced it plans to build the largest AI-oriented crypto treasury in the country based on Fetch.ai’s FET token.
The investment was announced by the firm on its official website, and the FET project did the same through an X post:
However, with TRNR’s stock down by 99% since 2024, trading at $0,91 at the time of writing.
On the other hand, FET is struggling to stay above $0,71, dipping 9% after the announcement. Critics have called it a Hail Mary pass.
For some others, this is not just about investing, but rebranding desperation as innovation. Crypto adoption is on everyone’s radar now, and it seems that nobody wants to be left behind.
The FET Treasury Play: Bold or Reckless?
1. The $500M Mirage
TRNR’s headline-grabbing figure is mostly theoretical:
- $55M is secured now (from ATW Partners and DWF Labs).
- The remaining $444M depends on investors opting to convert debt later, at a 20% premium to TRNR’s stock price.
2. Why FET?
Fetch.ai’s token powers AI agents for tasks like data analysis. TRNR claims synergies with “personalized workouts” and equipment maintenance. Yet FET’s price has halved since December, underperforming even other AI tokens.
3. Corporate Crypto Trend
Following MicroStrategy’s Bitcoin bets, companies are eyeing altcoins. But unlike BTC, FET lacks institutional adoption, making TRNR’s wager exceptionally risky.
Skeptics See Red Flags
- Stock Plunge: TRNR shares fell 25% post-announcement, reflecting investor skepticism.
- Ghost of Long Blockchain: Comparisons abound to the failed 2017 pivot by Long Island Iced Tea.
- AI or Hype? FET could be the XRP of AI, strong narrative, thin substance. Yet, the project might need some more time to excel in its operations.
Even Fetch.ai’s merger with SingularityNET and Ocean Protocol (forming the Artificial Superintelligence Alliance) hasn’t buoyed prices.
Summing Up
If TRNR’s bet pays off, it could pioneer altcoin treasuries, but the odds look steep. With a projected $75M in revenue for 2025 (up from $3.9M), the company needs its fitness business and crypto play to succeed. It should be healthy for the whole web3 ecosystem, too.
Final Thought: Is this a visionary pivot, or a dying firm chasing crypto’s shiny object? Even with great crypto adoption at this time, some projects fail to offer strong fundamentals to the community. Only time will tell if this was the right move.
For more content on underperforming crypto, read: Something Has Gone Wrong: 50% of Tokens Failed since 2021
