Sol Strategies CEO Leah Wald spoke to Cryptonews about the prospects for Solana and the trajectory of the holding company she heads, as it seeks to provide retail and institutional investors with access to all that the decentralized network has to offer.
Trading under the HODL ticker on the Canadian market and over-the-counter in the US as CYFRF, Sol Strategies stock is up 1,549% year-to-date. In the past week alone, it has risen 129%.
Meanwhile, the Solana price is up 7.9% this week, outperforming bitcoin and all large-cap altcoins.
In September the company rebranded from Cypherpunk Holdings to Sol Strategies, reflecting its all-in approach to Solana.
Alongside SOL, Sol Strategies continues to hold a relatively small amount of bitcoin.
GM: Are you able to say anything about the sort of high-potential Solana project opportunities Sol Strategies is looking to invest in?
LW: At Sol Strategies, we are actively seeking to invest in specific niches within the Solana ecosystem that align with its strengths in speed, scalability, and throughput.
We are particularly interested in projects advancing decentralized finance (DeFi) infrastructure, which can unlock new financial products and services within the Solana ecosystem.
Additionally, we’re focusing on decentralized identity solutions, which are critical for enhancing privacy and security across Web3 applications.
Cross-chain interoperability is also a key niche for us, as we believe that seamless communication between different blockchains is essential for the future of decentralized systems.
Finally, we are looking closely at real-world applications like payments and gaming that leverage Solana’s performance to create scalable solutions for mass adoption. These are areas where we see tremendous growth potential, and we’re excited to support projects that can contribute meaningfully to Solana’s broader ecosystem.
Can you discuss any of the delegated staking third parties, in particular, what it might indicate regarding institutional interest?
While I can’t disclose specific third parties at this time, I can speak to the broader trends we’re seeing. Institutional interest in staking on Solana is growing significantly, with various sophisticated players actively participating in staking operations.
Institutional interest in staking on Solana is rapidly increasing, with key players such as 3iQ, VanEck and 21Shares. All players have live filings with the TSX [Toronto Stock Exchange] and CBOE with Hashdex leading the way with innovative products like staked Solana ETFs. These funds, including Hashdex and QR Asset Management’s staked SOL ETFs in Brazil, showcase the strong appetite for institutional access to staking rewards, combining the benefits of Solana’s staking yields with traditional investment structures.
This growing demand for staked Exchange-Traded Products (ETPs) reflects broader confidence in Solana’s long-term potential as a Layer 1 blockchain. Institutions are attracted by the network’s efficiency, speed, and rapidly maturing infrastructure, which provides them the ability to capture staking rewards in a secure and scalable manner.
The increasing participation of well-capitalized institutional stakeholders highlights Solana’s position as a leader in decentralized finance and demonstrates a pivotal moment for broader adoption across decentralized systems.
Last week the company announced its intention to acquire Solana validators. Shortly before that news broke, a $10 million revolving credit facility was also revealed, signaling more Solana purchases to come.
Sol Strategies has set its sights on being the top validator in the Solana ecosystem. How does Sol Strategies allocate shareholder funds for buying SOL, as it does not have a closed-end structure like an investment trust?
Sol Strategies differs from a closed-end fund in several key ways. Unlike a closed-end fund, which raises a fixed amount of capital through an initial public offering (IPO) and then trades its shares on the open market, Sol Strategies is a holding company that continually manages and reallocates capital based on strategic decisions, without the constraints of a fixed capital pool.
A closed-end fund typically does not issue or redeem shares after its IPO, while Sol Strategies, as a publicly traded holding company, can use shareholder funds to invest in various projects and assets, particularly in the Solana ecosystem, and retain flexibility in how it raises capital.
Furthermore, Sol Strategies is actively involved in staking and running validators on Solana, focusing on its growth as part of its long-term strategy, rather than simply holding a portfolio of assets.
As with MicroStrategy, SOL Strategies trades at a premium to the value of its underlying holdings. It looks like this premium could widen considerably as the share price appreciates. Are you comfortable with this – presumably it is a price buyers are happy to pay to forego the hassle of holding SOL directly?
We recognize that investors see value in the ease of access and professional management that Sol Strategies offers. While the premium might reflect the growing demand for exposure to Solana’s potential without the complexities of direct custody and management, our focus remains on delivering value by actively participating in the ecosystem.
As we aim to continue to generate returns through staking and investing in Solana-based projects, we believe the market will find our approach compelling, and the premium is a natural result of that. Ultimately, our job is to make it easier for investors to access opportunities within the Solana ecosystem, and we’re confident in our ability to continue delivering on that.
Sol Strategies should be valued by additional metrics beyond the traditional discount or premium to Net Asset Value (NAV). Since it generates income through activities like staking and validator operations, and venture investments, metrics such as Earnings Per Share (EPS) could be more relevant, reflecting profitability per share.
Other useful metrics could include the Price-to-Earnings (P/E) Ratio for market valuation, Return on Equity (ROE) to assess the effectiveness of using shareholder capital, and performance indicators tied to staking yield or validator income. These provide a broader view of Sol Strategies’ financial health and growth potential compared to NAV alone. MSTR’s operating business differs from their treasury management thesis whereas Sol Strategies is in alignment.
What, if any, regulatory risks and challenges do you think Solana blockchain as a digital asset might face, and by association Sol Strategies?
The regulatory environment is always a consideration, particularly in such a rapidly evolving space. Solana, like other blockchain networks, could face scrutiny as regulators seek to define how digital assets and decentralized networks should be governed. That said, Solana’s focus on performance and scalability places it in a strong position to address regulatory challenges, especially as the ecosystem matures.
At Sol Strategies, we’re highly attuned to the shifting regulatory landscape and work closely with legal and compliance experts to ensure that we’re not only compliant but also advocates for sensible, forward-thinking regulation that allows innovation to thrive without compromising on security or transparency.
Do you have a view on what issues and opportunities blockchain industry and crypto finance regulations should look to guard against or foster? What would optimal ‘smart’ regulation of crypto look like?
Smart regulation should foster innovation while ensuring that markets are transparent and secure for participants. Over-regulation risks stifling growth, but under-regulation can leave the door open for bad actors.
The optimal regulatory framework for the blockchain industry would be one that encourages technological advancement, provides clear guidelines on security and compliance, and protects consumer interests without imposing burdensome requirements on legitimate projects.
A thoughtful balance can be achieved by engaging with industry leaders, fostering open dialogue with policymakers, and promoting self-regulatory standards that build trust in the space.
Look out for Cryptonews’ forthcoming deep dive into the Solana protocol in our next interview with the Sol Strategies leadership team.
The post Sol Strategies CEO Leah Wald Says its Business and Treasury Are Aligned, Unlike MicroStrategy’s appeared first on Cryptonews.
