Canadian-based SOL Methods is a publicly traded Solana-centric firm that has stockpiled the community’s native token—but it surely doesn’t wish to be confused with the rising listing of digital asset treasuries (or DATs) which have merely targeted on accumulating SOL, the community’s native token.
“Our thesis is that there is no sustainable marketplace for digital asset treasuries,” SOL Methods Interim CEO Michael Hubbard advised Decrypt. “That is not an attention-grabbing enterprise mannequin.”
“They are a proxy monetary engineering play that largely was pushed by short-term hype. I virtually wish to say greed, however that appears a bit sturdy,” he added. “I feel we’ll see one or two long-term sustainable or profitable DATs that sort of management the narrative, that drive the theme, however staking ETFs are going to eat their lunch.”
Hubbard stated that whereas the unique DAT thesis of offering publicity to beforehand uninvestible belongings—both based mostly on geography or different restrictions—was a fantastic thesis, it has misplaced its luster.
“Now we have now ETFs that present the identical stage of publicity, however ETFs are much more regulated and have a really recognized framework and protections round that,” he added.
ETFs additionally come from recognized issuers with managed and outlined bills, he added, whereas DATs can have complicated stability sheets, warrant overhangs, debt converts, and shares in personal placements that haven’t but been registered for resale.
“The worth hole that DATs are filling is narrowing very quickly,” stated Hubbard.
Staking ETFs add an extra profit for buyers by letting them get a share of community staking rewards for proof-of-stake belongings like Solana and Ethereum. The just lately launched Bitwise Solana Staking ETF has seen zero days of outflows since launching in late October, suggesting strong demand for each Solana and staking-enhanced funds.
SOL Methods was arguably the primary Solana treasury agency, rebranding from Cypherpunk Holdings in September 2024 to decide to a deal with the rising layer-1 community and its underlying token, SOL.
However the firm maintains that it’s greater than a DAT, as a substitute adopting the DAT++ moniker that lends credence to the model’s validator enterprise.
Hubbard, who took over as interim CEO in September with the departure of Leah Wald, is targeted on making certain shareholders and potential buyers understand it.
“What we’re actually attempting to convey to the market proper now could be our focus is to seize the worth of the financial system, not the foreign money,” stated Hubbard, talking in regards to the agency’s deal with the expansion of the Solana community and exercise, versus simply the value of the token.
“The foreign money [SOL] is a bit of it. It is a pillar of our basis,” he added. “However that is why we have now the working enterprise.”
The agency’s validator operations had greater than 2.8 million SOL or about $364 million in belongings underneath delegation as of its most just lately printed enterprise replace, incomes a community common of round 6.45% APY in rewards on that delegated stake.
It additionally manages a digital asset treasury of greater than 526,000 SOL or better than $67 million at immediately’s costs, putting it among the many high publicly listed holders of Solana.
“Utilizing the DAT++ time period has the destructive consequence that we’re being lumped into that basket,” stated Hubbard of the rising listing of Solana treasury corporations. “And to be clear, we expect that it is essential and priceless for us to have a treasury in Solana, as a result of we consider in Solana, the ecosystem and the asset.”
However the agency’s interim CEO, who joined in March when it acquired his validator enterprise, Laine, needs to proceed to push the narrative that SOL Methods shouldn’t be purely targeted on the worth of the SOL token, and as a substitute goals to be the corporate that captures the worth of all the Solana financial system.
“If I needed to, I might say we turn into just like the Berkshire Hathaway of Solana, or the S&P 500 of Solana,” he stated when requested about what success appears to be like like for the agency. “We’d be simply accelerating the ecosystem by way of our involvement, however on the identical time additionally capturing the worth of that whole development—and we’re not tied purely to the value of SOL.”
Hubbard’s feedback come because the yr’s digital asset treasury continues to point out indicators of weak spot. High corporations like Bitcoin large Technique and main Ethereum treasury BitMine have seen their inventory costs tumble in current weeks, whereas some DATS have began promoting off their crypto holdings in an try and prop up their share costs by way of inventory buybacks.
Shares of SOL Methods completed up 6% on Friday. Shares within the agency started buying and selling on the Nasdaq earlier this summer season as a part of its cross-listing with the Canadian Securities Alternate.
Solana is down about 33% within the final month, just lately buying and selling round $127 and greater than 56% off its January all-time excessive of $293.
Each day Debrief Publication
Begin each day with the highest information tales proper now, plus unique options, a podcast, movies and extra.
