Strategic Acquisitions, Inc.

What they do

The company was a shell with no commercial operations until it acquired Exworth Union on December 22, 2022, a business that originated U.S. dollar-denominated loans collateralized by digital assets. Prior to the merger, Exworth Management held 91% of Exworth Union and 74% of Strategic's common stock, and the deal was accounted for as a reverse recapitalization with Exworth Union as the accounting acquirer. Loans ranged from $500,000 to $5,000,000 with fixed terms of 3 to 36 months, and Bitcoin was the only collateral accepted. All loan receivables were settled by borrowers in July 2024 and lending operations have been temporarily stopped.

Revenue drivers

• Interest income on digital asset-backed loans — Interest on term loans collateralized by Bitcoin, the company's principal historical revenue source; no new loans have been originated since July 2024.
• Fees from loan receivable issuance — Origination and transaction-based fees tied to loan issuance, which ended when lending operations were suspended in July 2024.
• Liquidation fees — Fees triggered when a borrower's collateral threshold is breached and collateral is sold; there were no active loans to generate these after July 2024.
• Loan administration services — Initiated in 2023 as an additional service line, but the company ceased providing services that year.

Recent performance

Annual revenue fell from $58,938 in 2023 to $43,671 in 2024, and recent quarterly revenue was $13,747 in both 2024-03-31 and 2024-06-30, $16,177 in 2024-09-30, and $0 in 2024-12-31. Net loss was $162,260 in 2023, $123,716 in 2024, and $40,223 in 2025, with diluted EPS of negative $0.02, negative $0.02, and negative $0.01, respectively. Operating cash flow was negative $175,058 in 2023, negative $110,124 in 2024, and negative $30,473 in 2025. At 2026-06-30, total assets were $40,789, total liabilities were $60,000, and shareholders' equity was negative $19,211.

Strategy

The stated objective is to originate U.S. dollar loans to small businesses and individuals, mainly in Asia and Europe, who hold digital assets and want dollar liquidity. Management intends to build a proprietary software platform to originate and service digital asset-backed loans, but as of both December 31, 2025 and June 30, 2026 it had not begun software development due to lack of funding. The company also intends to generate transaction-based services fees and eventually support loans backed by assets beyond Bitcoin, though Bitcoin remains the only collateral ever accepted. No timeline for resuming lending is disclosed.

Risks

• Lending operations suspended — All loans were settled in July 2024 and the company has temporarily ceased lending, leaving it with no active revenue-generating loan book.
• Going concern and funding — The company reports negative operating cash flow, a history of losses, and substantial doubt about its ability to continue as a going concern, and has not begun software development because of lack of funding.
• Auditor PCAOB registration revoked — Former auditor Michael Studer, CPA had his PCAOB registration permanently revoked on June 24, 2025 and was permanently barred, so his past financial statements cannot be relied upon.
• Single-asset collateral and limited operating history — Bitcoin is the only collateral ever accepted, and the sole revenue-generating entity, Exworth Union, was incorporated in March 2022 and has a limited revenue history.

Outlook

Management describes the loan business as limited by the early stage of the digital asset industry, changing economic conditions, and the absence of a software platform. The company expects to keep incurring operating losses and says the timing of profitability and positive operating cash flow is uncertain. Future lending depends on obtaining funding to develop origination and servicing software, which had not started as of June 30, 2026.