Why Invest in a Solana Treasury Company?

Public Companies mentioned in this collection of publicly available articles gather from multiple sources:

• Sol Strategies (CYFRD*) – rumored acquistion target – see below
• Upexi (UPIX*)
• DeFi Development (DFDV*)
• Galaxy Digital (GLXY*)
• Crossover Holdings (KIDZ)
• Sharps Tech (STSS)
• Trump Media & Technology (DJT)
• Strategy (MSTR)

One of the questions frequently asked about Crypto coins is what is the fundamental, real world reason to invest on Crypto?

The mad dash into Ethereum and Solana is because there is now a financial reason based on a rate of return and a path to finance and grow the asset within the framework of Traditional Finance.

In less than two months, with the passage of the GENIUS Act money has rushed into Ethereum. It appears that a similar rush could develop into Solana (SOL).

The GENIUS Act sets federal standards for payment stablecoins, requiring issuers to hold reserves, undergo audits, and comply with anti-money laundering laws. 

Other major bills passed by the House in 2025, such as the CLARITY Act and the Anti-CBDC Surveillance State Act, are pending in the Senate. The CLARITY Act aims to define how digital assets are treated under securities and commodities laws, while the Anti-CBDC Surveillance State Act would prevent the Federal Reserve from creating a central bank digital currency without congressional approval. 

The tangeble reason for owning Solana (SOL) is provided By Leah Wald, President, CEO and Director of Sol Strategies in Sol Strategies Q3 report just presented:

The (Solana) market is coalescing into three distinct categories and understanding this evolution is critical to our positioning.
First, non-yield generating treasuries, predominantly Bitcoin companies whose growth depends almost entirely on external capital raises and financial engineering. They provide simple exposure but without organic compounding.
Second, yield-generating treasuries built on proof of stake based tokens, such as Ethereum and Solana, earning about 8% annually through staking. These are more capital efficient than Bitcoin-only models, but remains constrained by staking yield limits.
Third, Sol Strategies represents what we call DAT++, pairing organic staking yields with infrastructure-driven validator revenues. This dual engine allows us to compound treasury holdings and nearly double the rate of peers while contributing meaningfully to network security and decentralization.
Let me be specific about what this means. While staking only companies are able to grow their treasury by about 8% annually, our strategy compounds at roughly 16% on an organic basis. That difference may appear incremental in a single year, but compounded over multiple years. It creates a step change in scale, efficiency and shareholder value.

How many Solana treasury companies have the same three part business plan as Sol Strategies (CYFRD*) $8.16?

Two companies, Upexi (UPIX*) $8.14 and DeFi Development Corp. (DFDV*) $18.60, have adopted a similar three-part business plan as Sol Strategies. This strategy, pioneered by Michael Saylor’s MicroStrategy with Bitcoin, involves accumulating SOL, staking it to generate yield, and participating as a network validator. 

The three-part business plan

I: Acquiring SOL: The companies actively accumulate large quantities of Solana (SOL) for their balance sheets.

II: Running validators and staking SOL: They run validator nodes and stake their accumulated SOL to earn a recurring yield, effectively generating passive income.

III: Participating in the ecosystem: They use their position as a token holder and infrastructure provider to participate in and benefit from the growth of the Solana ecosystem. 

Companies replicating the strategy
According to recent reports, these two companies have followed this model: 

• Upexi: Reportedly one of the largest corporate holders of Solana, Upexi funds its acquisitions through equity raises and convertible notes.
• DeFi Development Corp. (formerly Janover): This company has also built a significant Solana treasury and runs its own validators to earn staking rewards. 

Other Solana treasury companies
Several other publicly traded companies also have Solana on their balance sheets, but they may not use the exact same strategy as Sol Strategies: 

• Classover Holdings Inc. (KIDZ) $1.30
• Torrent Capital Ltd. (TRPPF) $0.44
• SOL Global Investments Corp. (SOLCF) $0.08

The field is also growing with new entrants, as major crypto firms have announced plans to raise large funds to buy SOL and create new digital asset treasury companies. (below)

Crypto Giants Galaxy (GLXY*) , Jump (private) and Multicoin (private) Seek $1B to Raise Largest Solana Treasury: Report

Digital asset treasuries have become all the rage recently, with many firms copying the strategy popularized by Michael Saylor’s bitcoin (BTC) holding firm Strategy.
By Parikshit Mishra – Updated Aug 25, 2025
What to know:

• The three crypto firms have joined hands and have hired Cantor Fitzgerald as the lead banker, the report said.
• They plan to buy out a listed firm and create a digital asset treasury company, the report added.
• The combined firm will take on the Toronto-listed SOL Strategies, which recently has filed for a Nasdaq-listing.

What’s the ownership structure of the new Solana treasury company?
Details regarding the specific ownership structure of the proposed Solana treasury company are not yet public.

The initiative, which is still subject to a final deal, involves a collaboration between several major players to acquire and restructure a publicly traded company. 
Key details known about the new treasury company:

• A joint acquisition: Galaxy Digital, Multicoin Capital, and Jump Crypto are working together to raise $1 billion to acquire and convert an existing, but unnamed, public company. This approach is modeled after MicroStrategy’s successful strategy for acquiring Bitcoin.
• Financing structure: Investment banking firm Cantor Fitzgerald is acting as the lead banker for the deal, which could be finalized in early September 2025. This transaction would likely involve capital-raising methods like a Private Investment in Public Equity (PIPE).
• Shareholders and investors: Once the existing public company is acquired and rebranded as a Solana treasury company, its ownership will be structured by the investors participating in the deal. This would include Galaxy, Multicoin, and Jump, as well as any other institutional investors that contribute to the fundraise.
• Public vehicle: The result will be a publicly listed entity that holds Solana on its balance sheet. This allows traditional investors to gain exposure to the Solana cryptocurrency by buying stock in the company, without needing to hold the crypto directly. 

This institutional collaboration is a strategic move to integrate a digital asset like Solana into traditional financial markets. 

What company might become the Solana treasury company?
The identity of the public company that will be acquired and converted into the $1 billion Solana treasury has not been disclosed.

While the target company for the Galaxy-led initiative is currently unknown, other similar efforts have recently identified their publicly traded vehicle:

• Pantera Capital is reportedly working on a separate initiative to raise $1.25 billion to convert a Nasdaq-listed company into a Solana treasury vehicle tentatively called “Solana Co.”.
• Sharps Technology (STSS), a small medical device company, announced in August 2025 that it is selling $400 million in stock to fund a Solana treasury, backed by investment funds including Pantera Capital.
• Trump Media & Technology Group (DJT) is creating a new crypto treasury company, Trump Media Group CRO Strategy, that will acquire CRO tokens.
• SOL Strategies Inc. (CYFRD) is another existing public company that has accumulated Solana and is a rumored target for acquisition, although it is not specifically tied to the Galaxy Digital-led deal. 

This indicates a growing trend of institutional investors using publicly traded companies as vehicles to accumulate crypto assets like Solana, often modeled on MicroStrategy’s successful strategy with Bitcoin

Various Accounts related to LOTM hold positions in Sol Strategy, Galaxy Digital, Upexi and DeFi Development.

One thing seems ceratin – There is a plan by multiple operators to accumulate as much Solana (SOL) as they can that has just started.

Third Party Comment on Solana:

“Missed ETH’s MASSIVE Pump? Solana Is Next | 0xMert” on YouTube

Aug 27, 2025 #Solana #Crypto #Bitcoin

Missed Ethereum at $1,000? Don’t miss this! Solana is poised to become a trillion-dollar asset, according to Mert Mumtaz, founder of Helius and the backbone of Solana’s infrastructure. Discover how Solana’s 100x speed upgrade will revolutionize crypto with 100-millisecond finality, faster than a blink! Mert predicts crypto will rewire the global economy, just like email transformed communication. Learn how Solana is battle-tested and ready to handle massive demand, setting it up to be the biggest institutional trade of the decade. This isn’t just about Bitcoin or Ethereum anymore. Dive into the future of decentralized finance and understand what’s new with Solana. Watch now before institutions catch on!

LOTM Research & Consulting Service
* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
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