'Milestone quarter': Solana Company reports Q3 revenue growth driven by staking rewards

Solana Company (HSDT) reported strong growth in its third-quarter revenue, primarily driven by staking revenue on its SOL Solana (SOL) holdings.

According to its Wednesday press release, the digital asset treasury firm posted $3.4 million in quarterly revenue, compared with $697,000 in the same period last year. Around $3.3 million of the revenue came from staking. Its year-to-date revenue reached $9.5 million.

As of Sept. 30, the company held roughly 2.4 million SOL, with a fair value of approximately $288.2 million. The firm generated an average net staking yield of 5.9% APY on its treasury holdings, outperforming the Solana network's average 4.9% APY. During the quarter, the firm earned 30,800 SOL in staking rewards, which were restaked.

Gross profit for the quarter was $2.7 million, or an approximate 82% gross margin, compared with $594,000 in the third quarter of the prior year. 

Pacific Backbone

"This was a milestone quarter for Solana Company," said CEO Joseph Chee. "Our Pacific Backbone infrastructure went live, institutions entrusted us with a million SOL of third-party stake, and that confidence is already flowing through to our revenue."

Pacific Backbone is Solana Company's staking and validator infrastructure cluster in the Asia-Pacific region, connecting key financial hubs including Seoul, Tokyo, Singapore, and Hong Kong to support Solana staking and validation.

Pacific Backbone operations had about 1.3 million SOL of total stake delegated as of the end of Q3, including 1 million SOL from third parties. Total assets stood at $292.6 million.

"We are building the bridge that brings Asia's financial institutions onto Solana, and with our new headquarters in Hong Kong, we will be building it right where the demand is," Chee added.

The company also priced an approximately $15 million registered direct offering at a 5% premium to net asset value per share and used the proceeds to purchase about 125,000 SOL. It repurchased roughly $2.8 million of Class A common stock during the quarter.