Solana Company posts $3.4 million in Q3 revenue as staking income climbs

Solana Company on Wednesday reported $3.4 million in third-quarter revenue as its institutional staking operations expanded and its $SOL treasury reached approximately 2.4 million tokens, valued at about $288 million at the end of September.

The Nasdaq-listed digital asset treasury firm said its average net staking yield was 5.9% APY, 100 basis points above Solana’s network average, while its operating costs fell to their lowest level yet.

Solana Company’s Pacific Backbone infrastructure moved into live operations during the quarter, with approximately 1.3 million $SOL delegated as of Sept. 30. Around 1 million $SOL came from third-party delegators.

Solana Company also took part in the network’s first onchain governance vote and delivered more than 40 educational sessions and advisory workshops for banks, asset managers and exchanges across Asia-Pacific, it said.

The company raised approximately $15 million through a registered direct offering priced at a 5% premium to net asset value per share and deployed the proceeds to purchase roughly 125,000 $SOL. Separately, it bought back 1.4 million Class A shares for approximately $2.8 million during the quarter, bringing year-to-date repurchases to $8.7 million. Its diluted share count under the Treasury Stock Method was approximately 85.2 million, representing 0.0274 $SOL per diluted share.

Third-quarter revenue increased to $3.4 million from $700,000 a year earlier, with staking contributing $3.3 million and other revenue accounting for $23,000. Revenue for the first nine months reached $9.5 million. The company generated 30,800 $SOL in staking rewards and automatically restaked the tokens. Cost of revenue came to $600,000, producing gross profit of $2.7 million and an 82% gross margin.

General and administrative expenses fell to $3.4 million from $5.5 million in the prior-year quarter, reflecting lower bonus expenses and professional fees, partly offset by higher trading advisory and custody fees. For the first nine months, however, those expenses rose to $19.7 million from $12.7 million, mainly because of $6.8 million in severance costs associated with the PoNS divestiture.

Solana Company recorded approximately $103.9 million in income from operations and $105.2 million in net income for the quarter, compared with an operating loss of $35.5 million and a net loss of $352.8 million in the same period last year. Earnings were $1.21 per basic share and $1.17 per diluted share. Nonoperating income was $1.3 million, including a $1.7 million gain related to the fair-value change in derivative liabilities and $400,000 in other expenses, primarily tied to foreign exchange fluctuations.

The company ended September with $292.6 million in total assets, including $1.1 million in cash, $21 million in current digital assets and $252.4 million in long-term digital assets and related exposures across staked positions, restricted assets, receivables and fund investments. Another $14.8 million was recorded as a broker receivable for $SOL purchased on the final day of the quarter and settled on Oct. 1.