Canadian-based SOL Methods is a publicly traded Solana-centric firm that has stockpiled the community’s native token—but it surely doesn’t need to be confused with the rising checklist 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 need to say greed, however that appears a bit sturdy,” he added. “I believe we’ll see one or two long-term sustainable or profitable DATs that type 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 property—both primarily based on geography or different restrictions—was an excellent 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 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 advanced stability sheets, warrant overhangs, debt converts, and shares in non-public 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 traders by letting them get a share of community staking rewards for proof-of-stake property like Solana and Ethereum. The not too long ago 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 deal with the rising layer-1 community and its underlying token, SOL.
However the firm maintains that it’s greater than a DAT, as an alternative 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 guaranteeing shareholders and potential traders comprehend it.
“What we’re actually attempting to convey to the market proper now could be our focus is to seize the worth of the economic system, not the foreign money,” stated Hubbard, talking concerning 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 property below delegation as of its most not too long ago 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 higher than $67 million at at present’s costs, inserting it among the many high publicly listed holders of Solana.
“Utilizing the DAT++ time period has the detrimental consequence that we’re being lumped into that basket,” stated Hubbard of the rising checklist of Solana treasury companies. “And to be clear, we predict that it is crucial and beneficial 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, desires to proceed to push the narrative that SOL Methods shouldn’t be purely targeted on the worth of the SOL token, and as an alternative goals to be the corporate that captures the worth of the complete Solana economic system.
“If I needed to, I might say we grow to be 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 our involvement, however on the similar time additionally capturing the worth of that complete 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 indicate indicators of weak spot. High companies like Bitcoin big 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 to prop up their share costs by 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, not too long ago buying and selling round $127 and greater than 56% off its January all-time excessive of $293.
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