Greenlane Holdings Announces Operating Cost Cuts And Reaffirms Long-Term BERA Accumulation Strategy

Greenlane is aligning its operating expenses with its digital asset treasury strategy, which is a simpler and lower overhead operating model than its legacy business of developing, manufacturing, and distributing consumer products.

Cost saving initiatives include reducing headcount, exiting legacy warehouse operations, and reducing other public company costs.

The Company continues to evaluate opportunities to further reduce its operating cost structure.

These steps are intended to give the Company greater financial flexibility to pursue its BERA accumulation strategy.

Separately, the Berachain Foundation has activated PoL Next, an upgrade designed to direct more of Berachain’s yield to BERA holders1.

Greenlane management believes this upgrade may improve the long-term economics of holding BERA and is consistent with Greenlane’s treasury strategy.

If PoL Next operates as the Berachain Foundation intends, Greenlane, as a BERA holder, may benefit from increased yield over time, although the amount and timing of any benefit are uncertain and may be zero.

Financial Discipline and Operational Efficiency Since completing its strategic transition in October 2025, Greenlane has taken meaningful steps to reduce its operating cost structure, including fully exiting warehouse operations, converting its legacy commerce business to an asset-light, drop-ship model, and reducing headcount from 23 positions at December 31, 2025 to 13 today, a reduction of more than 40%.

These actions drove cost of sales down from approximately $748,000 to approximately $231,000 and facility costs down from approximately $500,000 to approximately $200,000, in each case comparing the first quarter of 2026 to the prior year period.

First quarter 2026 general and administrative expenses also included approximately $2.3 million in non-recurring costs tied to Nasdaq compliance, the reverse stock split, and legacy facility exits that management does not expect to recur.

During the second quarter of 2026, management continued this work through vendor contract renegotiations, rationalization of software and third-party service agreements, reductions in professional and advisory fees, and further headcount alignment.

The Company is actively working to resolve legacy accounts payable and other liabilities, which management expects to reduce future cash requirements over time.

Digital Asset Treasury Strategy Greenlane’s BERA treasury strategy is focused on active participation in the Berachain ecosystem while seeking to increase its BERA holdings.

Greenlane holds 81.6 million units of BERA as of July 7, 20262 The Company stakes its BERA holdings and earns staking rewards, which it recognizes as revenue in accordance with its accounting policies, and deploys its stablecoin treasury into DeFi markets The Company plans to continue opportunistically buying and accumulating BERA, deploying it to earn staking rewards, and supporting the Berachain ecosystem PoL Next The Berachain Foundation has activated PoL Next, an upgrade that consolidates Berachain’s protocol rewards into a single yield-bearing asset, sWBERA.

This initiative is intended, according to the Berachain Foundation, to increase yields for sWBERA and the protocol revenue directed to BERA holders over time.

As a holder of BERA and sWBERA, Greenlane may benefit from the new yield structure over time; any such benefit is uncertain in amount and timing and may be zero3.

The Berachain Foundation also intends to partner directly with select startups building on Berachain, providing support in exchange for revenue-sharing arrangements designed to benefit BERA holders.