Based in Canada, SOL Strategies is a publicly traded company. SolanaAlthough it is the central company stockpiling the network’s native token, it does not want to be confused with the growing list of digital asset vaults (or DATs) that are solely focused on accumulating the network’s native token, SOL.
“Our thesis is that there is no sustainable market for digital asset bonds,” said Michael Hubbard, interim CEO of SOL Strategies. Decrypt. “That’s not an interesting business model.”
“These are primarily acts of financial engineering driven by short-term hype. I’d like to call it greedy, but that seems a little strong,” he added. “I think there will be one or two long-term sustainable and successful DATs that control the narrative and drive the theme, but staking ETFs will eat their lunch.”
Hubbard said the original DAT theory of providing exposure to assets that were previously unavailable based on geography or other limitations was a great theory, but has lost its luster.
He added: “There are now ETFs that offer the same level of exposure, but ETFs are much more regulated and have well-known frameworks and safeguards around them.”
He also added that while ETFs are issued by known issuers with managed and defined fees, DATs may have complex balance sheets, warrant overhangs, debt conversions and private placements that are not yet registered for resale.
“The value gap that DAT fills is shrinking very quickly,” Hubbard said.
Staking ETFs add an additional benefit to investors by allowing them to earn a portion of network staking rewards on proof-of-stake assets such as Solana and Ethereum. The recently launched Bitwise Solana Staking ETF has recorded zero outflow days since its launch in late October, suggesting solid demand for both Solana and the staking-enhanced fund.
SOL Strategies was probably the first Solana finance company; cypherpunk holdings In September 2024, we are committed to focusing on our growing Layer 1 network and its underlying token, SOL.
But the company claims this is more than just a DAT. Adopted the name DAT++ It gives credibility to the brand validator business.
Mr. Hubbard was appointed interim CEO in 2016. Leah Wald left the group in September.focused on ensuring that shareholders and future investors are aware of it.
“What we’re really trying to communicate to the market right now is that we’re focused on capturing the value of the economy, not the currency,” Hubbard said of the company’s focus on growing Solana’s network and activity, not just the price of the token.
“The currency (SOL) is part of that. It’s a pillar of our foundation,” he added. “But that’s why we’re in the operating business.”
The company’s validator business had entrusted assets of over 2.8 million SOL, or approximately $364 million, at that time. Recently published business updatesthe network earns an average reward of approximately 6.45% APY on its delegated stake.
It also manages a digital asset vault of over 526,000 SOL, or over $67 million at today’s prices. It is one of Solana’s top listed holders.
“Using the term DAT++ has the negative effect of lumping us into that basket,” Hubbard said of the growing list of Solana financial companies. “Let me be clear: We believe in Solana, we believe in the ecosystem, and we believe in the asset, so we think having a treasury in Solana is very important and valuable.”
However, the company’s interim CEO, who was replaced by Reign after acquiring the validator business in March, wants to maintain that SOL Strategies is not purely focused on the value of the SOL token, but instead aims to be a company that captures the value of the entire Solana economy.
Asked what success looks like for the company, he said, “If I had to say, we would be like the Berkshire Hathaway of Solana or the S&P 500 of Solana.” “We’re just accelerating the ecosystem through our engagement, but we’re also capturing the value of that overall growth. And we’re not purely tied to SOL pricing.”
Hubbard’s comments come as digital asset financials continue to show signs of weakness this year. Top companies such as Bitcoin major Strategy and major Ethereum treasury BitMine, stock prices plummet Although some DATS have been launched in recent weeks; Sell your crypto assets The company is trying to support stock prices through share buybacks.
SOL Strategies stock ended Friday up 6%. The company’s shares began trading on the Nasdaq earlier this summer as part of a cross-listing with the Canadian Securities Exchange.
Solana has fallen about 33% in the past month and has recently been trading around $127, more than 56% below January’s all-time high of $293.
