Solana Company (HSDT) reports $3.4M Q3 revenue as staking drives growth
In brief
- Q3 revenue reached $3.4 million, up from $697,000 a year earlier, the company reported.
- Net income was $105.2 million, including a $102.7 million unrealized gain on digital assets.
- Staking rewards totaled 30.8 thousand SOL, which the company restaked rather than sold.
- SOL holdings stood at about 2.4 million tokens, worth roughly $288 million, at quarter-end.
- Pacific Backbone delegations rose from about 1.3 million to 1.5 million SOL, per the company.
Staking did the revenue work
Most of the revenue growth came from staking. Solana Company earned 30.8 thousand SOL in staking rewards during the quarter (which ended September 30), and it didn't sell them.
Those rewards were automatically restaked, meaning the company put them straight back to work rather than selling them.
That fits the company's stated strategy: hold SOL as a core treasury asset and generate yield through staking and validator services. Gross margin on operations came in at approximately 82%, and year-to-date revenue reached $9.5 million as of September 30, per the results. The company also completed a registered direct offering of around $15 million during the period and used the proceeds to buy about 125,000 SOL.
The profit is mostly a price move
The bottom line needs context. Of the $105.2 million in net income, $102.7 million was an unrealized gain on digital assets, and the prior-year period showed a $352.8 million loss.
It's a token price story, not an operating one.
Crypto Briefing noted that the gain reflects unsold tokens becoming worth more on the balance sheet, an increase accounting rules required to flow through the income statement. The outlet also pointed out that the same mechanism could reverse if SOL falls. At quarter-end, Solana Company held about 2.4 million SOL, valued at approximately $288 million.
Pacific Backbone delegations climb
Pacific Backbone is the company's validator operation. According to the company, it had approximately 1.3 million SOL delegated by September 30, and that figure grew to 1.5 million SOL by early November.
Crypto Briefing read that roughly five-week climb as a sign of demand for the company's validator services beyond its own treasury. That's the outlet's interpretation. It also contrasted SOL treasuries, which can earn staking rewards on the asset they hold, with Bitcoin treasury firms, which don't have a native staking yield to collect.
Frequently asked questions
Why did Solana Company report $105.2 million in net income for Q3?
Most of it came from SOL getting more expensive. Of the $105.2 million, $102.7 million was an unrealized gain on digital assets. Crypto Briefing noted that accounting rules required the higher value of the company's unsold tokens to flow through the income statement.
Where did Solana Company's Q3 revenue come from?
Most of the revenue growth came from staking. The company earned 30.8 thousand SOL in staking rewards during the quarter and automatically restaked them instead of selling. Q3 revenue was $3.4 million, and gross margin on operations was about 82%.
What is Pacific Backbone?
Pacific Backbone is Solana Company's validator operation. According to the company, it had about 1.3 million SOL delegated by September 30, and that grew to 1.5 million SOL by early November.
