SecureTech Innovations committed $4.5 million in Series A Preferred Stock to purchase a 15% net interest in QSTAK Holding, LLC, a move signaling substantial confidence in the future of blockchain technology. The investment accompanies a perpetual, exclusive, worldwide license to QSTAK’s blockchain and associated post-quantum technologies, including those still under development. Together, these transactions give Piranha Blockchain its first operating business since its formation, with initial consolidated revenue anticipated during the current fiscal quarter.
SecureTech Acquires Exclusive QSTAKCHAIN Blockchain and Technology License
SecureTech Innovations secured a perpetual, exclusive, worldwide license to the QSTAK and QSTAKCHAIN technologies, a grant of rights extending beyond simple usage to encompass future developments in post-quantum security features and the QSTAK exchange currently in advanced stages of development. This license allows SecureTech’s subsidiary, Piranha Blockchain, Inc., to immediately use an existing live blockchain network, complete with a block explorer and wallet, rather than initiating development from the ground up.
The agreement’s scope is notable for its permanence and global reach, removing limitations on SecureTech’s commercialization efforts. The financial structure of the license agreement prioritizes equity preservation. SecureTech will issue consideration totaling up to $22 million in newly designated Series B Preferred Stock, with no cash outlay required from the company.
Initial consideration of $6 million, in the form of 600 Series B shares, was earned at closing, with subsequent tranches tied to the commercial launch of the QSTAK Exchange and the achievement of specific revenue milestones for QSTAK Market, the newly formed joint venture, the company says. SecureTech anticipates recording the license as an intangible asset on its balance sheet, initially valued at the $6 million earned at closing, adhering to U.S. generally accepted accounting principles.
Holders of the Series B Preferred Stock will not have conversion rights to common stock. QSTAK will receive no ongoing cash or royalty payments for SecureTech’s use of the licensed technology. Alongside the licensing agreement, SecureTech established QSTAK Market, LLC, a Wyoming limited liability company majority-owned by Piranha Blockchain, with QSTAK and Craft Capital Management, LLC, holding minority stakes.
This joint venture will focus on the tokenization of real-world assets, representing ownership in physical or financial assets as digital tokens on the QSTAKCHAIN blockchain, and will operate in compliance with applicable regulatory requirements, according to the company. Scott Sitra, SecureTech’s President and CEO, stated, “We’re starting with a live blockchain network, block explorer, and wallet, and a team already advancing post-quantum security.”
This investment will be initially recorded at cost, directly increasing SecureTech’s total assets and stockholders’ equity, and the company received the right to appoint a non-voting observer to QSTAK’s governing board. Sitra added, “Just as important, we believe this is a financially compelling transaction for our shareholders.
We secured these technologies and a 15% stake in QSTAK entirely with preferred stock, not cash.” Piranha Blockchain’s operational trajectory is accelerating; the company anticipates initial consolidated revenue during the current fiscal quarter, marking its first operating business since its formation. This rapid path to monetization is directly enabled by the acquired license and the established QSTAK infrastructure, allowing Piranha Blockchain to bypass the lengthy and resource-intensive process of building a blockchain network from scratch.
The combination of the exclusive license, the joint venture and the equity stake in QSTAK positions SecureTech to capitalize on both current blockchain technologies and the emerging field of quantum-resistant infrastructure, the firm reports. The company’s strategy centers on using existing assets and expertise to accelerate commercialization, minimizing financial risk through the use of preferred stock, and establishing a strong foothold in the rapidly evolving digital asset landscape. SecureTech expects to share more detailed information about QSTAKCHAIN and QSTAK Market’s planned operations in a future announcement, further outlining its vision for the future of blockchain technology.
We secured these technologies and a 15% stake in QSTAK entirely with preferred stock, not cash. Our $4.5 million investment in QSTAK will be recorded at cost, adding directly to our total assets and stockholders’ equity, and we expect the license itself to be recorded as an intangible asset as well.
J. Scott Sitra, President and CEO at SecureTech
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