SOL Strategies, based in Canada, is a publicly traded company Solananetwork-centric company that has stored the network’s native token, but it does not want to be confused with the growing list of digital asset hoards (or DATs) that have actually focused on accumulating SOL, the network’s native token.
“Our thesis is that there is no sustainable market for digital asset treasures,” said Michael Hubbard, interim CEO of SOL Strategies. Decrypt. “It’s not an attractive business model.”
“This is a proxy financial engineering operation that was largely driven by short-term hype. I almost want to say greed, but that seems a bit strong,” he added. “I think we’ll see one or two long-term sustainable or successful DATs that will sort of control the narrative, that will drive the theme, but the staking ETFs are going to eat their lunch.”
Hubbard said that while DAT’s original thesis of providing exposure to previously uninvestable assets — either based on geography or other restrictions — was a great thesis, it has lost its luster.
“We now have ETFs that provide the same level of exposure, but ETFs are much more regulated and have a very well-known framework and protections around that,” he added.
ETFs also come from known issues with controlled and defined expenses, he added, while DATs can have complex balance sheets, excess warrants, debt conversions and shares in private placements that have not yet been registered for resale.
“The value gap filled by DATs is closing very quickly,” Hubbard said.
Staking ETFs add an additional benefit to investors by allowing them to get a share of the network’s staking rewards for proof-of-stake assets like Solana and Ethereum. The recently launched Bitwise Solana Staking ETF has not seen a single exit day since its launch in late October, suggesting solid demand for Solana and staking-enhanced funds.
SOL Strategies was arguably the first Solana treasury company, renamed Cypherpunk Fund In September 2024, commit to focus on the growing Layer 1 network and its underlying token, SOL.
But the company maintains that it’s more than just a DAT. adopt the nickname DAT++ this gives credit to the brand’s commercial validator.
Hubbard, who took over as interim director in September with the departure of Leah Waldaims to ensure that shareholders and potential investors are informed.
“What we’re really trying to convey to the market right now is that our goal is to capture the value of the economy, not the currency,” Hubbard said, speaking of the company’s focus on growing the Solana network and business, relative to the price of the token alone.
“The currency [SOL] is a piece of it. It’s a pillar of our foundation,” he added. “But that’s why we have the operational business.”
The company’s validation operations had over 2.8 million SOL, or approximately $364 million in assets under delegation at the time of its inception. most recent business update releasedearning a network average of approximately 6.45% APY in rewards on this delegated stake.
It also manages a digital asset trove of over 526,000 SOL or above $67 at current prices, putting it in the millions. among the largest publicly traded Solana holders.
“The negative consequence of using the term DAT++ is that we are lumped into this basket,” Hubbard said of the growing list of Solana treasury companies. “And to be clear, we think it’s very important and valuable for us to have a treasure in Solana, because we believe in Solana, the ecosystem and the asset.”
But the company’s interim CEO, who joined the company in March when it acquired its validation business, Laine, wants to continue to make the case that SOL Strategies is not focused solely on the value of the SOL token, but rather aims to be the company that captures the value of the entire Solana economy.
“If I had to do it, I would say we become like the Berkshire Hathaway of Solana, or the S&P 500 of Solana,” he said when asked what success for the company looks like. “We would only accelerate the ecosystem through our involvement, but at the same time we would also capture the value of all of this growth – and we are not just tied to the price of SOL.”
Hubbard’s comments come as digital assets’ cash flow for the year continues to show signs of weakness. Big companies like giant Bitcoin strategy and Ethereum’s main treasure, BitMine, have seen their stock prices fall In recent weeks, as some DATS have started Sell their crypto holdings with the aim of supporting their share prices through share buybacks.
Shares of SOL Strategies ended up 6% on Friday. The company’s shares began trading on Nasdaq earlier this summer as part of its cross-listing with the Canadian Securities Exchange.
Solana is down about 33% over the past month, recently trading around $127 and more than 56% off its January all-time high of $293.
