Letter to Shareholders: We Are Not a SOL Company, We Are a Solana Company

My name is Michael Hubbard, and I am the Interim CEO of SOL Strategies. As someone who has been active in blockchain infrastructure for nearly a decade, is deeply embedded in the Solana ecosystem, and is a shareholder of this company, I want to share our path forward.

I joined SOL Strategies in March through the Laine acquisition, where I had built an independent validator operation with significant delegated stake. When SOL Strategies approached me about acquiring Laine, my thoughts went far beyond an exit. I joined this company because I have a vision for what it and Solana can be, and with our team of highly accomplished and passionate executives, we are executing upon that vision.

Though we were the first Solana digital asset treasury by over half a year, incumbency is no moat. The sector has seen over a dozen Solana-focused DATs launched this year. This raises an obvious question: “Why does the market need ten companies that just hold staked SOL as passive proxy vehicles?” The answer is clear – it doesn’t.

Yes, there may be some differentiation in leverage, capital structures, and execution, but the fundamental substance is the same. With staked SOL ETFs on the horizon, the relevance of pure-play DATs becomes even more questionable. ETFs will offer cleaner, lower-cost SOL exposure for investors primarily seeking correlation to token appreciation.

Many DATs can potentially grow shareholder value through capital raising at premiums to net asset value. This worked well in April when new investors could capture easy multiples. Now many DATs trade at or below NAV. As that famous scene in Margin Call goes: “The music is about to stop”, but we are dancing to a different song. Our validator cash flow, clean balance sheet, and focus on bridging traditional finance and blockchain give us a structural advantage as this market matures.

We have been vocal about this all year, and in recent months we have further defined our business model as DAT++. Pure-play DATs are commoditized. We are building a revenue-generating infrastructure business atop a DAT foundation. Our DAT++ strategy combines our digital asset strategy of acquiring a treasury of Solana with our revenue generating validator business line. 

Most DATs represent a bet on the currency, Solana. We are betting on the economy of Solana.

As the global financial system continues to adopt blockchain technology, we are positioning ourselves to capture the Solana economy’s growth. Our substantial treasury of over half a million SOL provides us with a sound foundation. Our infrastructure business expands this to capture upside from the growth of the entire Solana economy.

Our infrastructure business manages over 700 million Canadian Dollars in delegated SOL, mostly in third party delegations. Through our white label validator services, recently our Solana Mobile validator grew to over C$100m in delegated stake from over 10,000 unique wallets in just two months, maintaining a  perfect uptime record.

Through our validators, we execute several million transactions each day on the Solana blockchain, capturing transaction fees that grow as Solana adoption grows. If Solana wins, we win.  

Our goal is simple: become Wall Street’s Gateway to Solana.

Through our partnerships, operations, engineering and finance teams and our continued advocacy for Solana’s technology, we are laying the foundation to become The Solana Company.

I invite any interested shareholder or other party to reach out to [email protected]. My team and I will get back to you as soon as possible.

With kind regards,

Michael Hubbard

Interim CEO
SOL Strategies Inc.

 

Disclaimer: Nothing in this blog is intended to be professional advice, including without limitation, financial, investment, legal or tax advice.  SOL Strategies is not responsible for your use of or reliance on any information in this blog as it is provided solely for educational purposes. Purchasing crypto assets carries a high level of risk, including price volatility, regulatory changes, and cyber attacks. On-chain transactions are irreversible once confirmed, and errors may result in permanent loss. Please make sure to do your own research and make decisions based on your unique circumstances.

Risk Disclosure: Crypto investments come with risks, including the potential loss of funds. Always research before making financial decisions. SOL Strategies does not provide financial, investment, or legal advice.

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