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 centered on accumulating SOL, the community’s native token.
“Our thesis is that there isn’t any 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 robust,” he added. “I feel we’ll see one or two long-term sustainable or profitable DATs that form of management the narrative, that drive the theme, however staking ETFs are going to eat their lunch.”
Hubbard mentioned that whereas the unique DAT thesis of offering publicity to beforehand uninvestible belongings—both primarily based on geography or different restrictions—was a terrific thesis, it has misplaced its luster.
“Now we have now ETFs that present the identical degree of publicity, however ETFs are much more regulated and have a really identified framework and protections round that,” he added.
ETFs additionally come from identified 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,” mentioned Hubbard.
Staking ETFs add an additional profit for traders 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 stable 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 give attention to 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 concentrated on making certain shareholders and potential traders understand it.
“What we’re actually making an attempt to convey to the market proper now’s our focus is to seize the worth of the economic system, not the foreign money,” mentioned Hubbard, talking concerning the agency’s give attention to the expansion of the Solana community and exercise, versus simply the value of the token.
“The foreign money [SOL] is a chunk 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 revealed 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 in the present day’s costs, inserting it among the many prime publicly listed holders of Solana.
“Utilizing the DAT++ time period has the unfavourable consequence that we’re being lumped into that basket,” mentioned Hubbard of the rising listing of Solana treasury corporations. “And to be clear, we predict that it is crucial and worthwhile 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 centered on the worth of the SOL token, and as a substitute goals to be the corporate that captures the worth of the complete Solana economic system.
“If I needed to, I’d say we grow to be just like the Berkshire Hathaway of Solana, or the S&P 500 of Solana,” he mentioned when requested about what success seems like for the agency. “We might be simply accelerating the ecosystem by means of our involvement, however on the similar time additionally capturing the worth of that total development—and we’re not tied purely to the value of SOL.”
Hubbard’s feedback come because the 12 months’s digital asset treasury continues to point out indicators of weak spot. Prime 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 means 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 Change.
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.
