Solana Company's Q3 revenue nearly quintuples on staking income

what happened

According to a press release reported by The Block, Solana Company (HSDT) posted third-quarter revenue of $3.4 million, against $697,000 a year earlier. Around $3.3 million came from staking its SOL holdings, and year-to-date revenue reached $9.5 million. Gross profit was $2.7 million, a gross margin of roughly 82%.

As of September 30 the firm held about 2.4 million SOL, worth around $288.2 million. Its average net staking yield was 5.9% APY, above the Solana network average of 4.9%. The 30,800 SOL it earned in rewards during the quarter were restaked.

The company also said its Pacific Backbone staking and validator cluster, linking Seoul, Tokyo, Singapore and Hong Kong, is now live, with about 1.3 million SOL delegated to it, 1 million of that from third parties. It raised roughly $15 million through a registered offering priced 5% above net asset value per share, bought about 125,000 SOL, and repurchased around $2.8 million of Class A stock.

why it matters

Nearly all of the revenue comes from staking, so the company's earnings depend on both the size of its SOL holdings and the yield it earns. Its equity value is also tied to the SOL price, which matters for investors weighing the treasury-company model.

market impact

HSDT shares and SOL: staking-driven revenue growth supports the company's treasury-company model

• ▲HSDT shares pressure up — staking revenue growth and share buybacks support interest in the company

tags

instruments