Walk into any crypto café these days, and you might hear whispers about companies turning themselves into digital treasure chests. These aren’t just any companies. They are firms actively accumulating Solana tokens, often with a little help from the Solana Foundation itself. This strategy has certainly made waves.
- Companies are increasingly forming “digital treasure chests” by accumulating Solana tokens, often with support from the Solana Foundation. This strategy involves purchasing SOL at a discount, which fuels demand and increases Solana’s visibility among investors.
- While some see this as a positive development for the ecosystem, others express concerns about supporting numerous such entities, noting a potential decrease in valuation multiples.
- Other blockchain foundations, like Tron DAO and Dogecoin Foundation, also engage in similar treasury support, indicating a broader trend in promoting token ecosystems through corporate accumulation.
The Solana Foundation, a Swiss non-profit, works to promote the Solana ecosystem. Part of that work involves agreements to sell large blocks of SOL at a discount. This approach has fueled a rise in publicly listed Solana treasuries. It’s a fascinating trend, but it also sparks some debate.
Think of it like this: a company decides its main business is now holding SOL tokens. This drives demand and increases visibility for Solana among investors. The foundation’s willingness to help several companies pursue this almost identical strategy has drawn some mixed reactions from within the space.
Take Brera Holdings, for example. This Ireland-based owner of professional soccer clubs, listed on Nasdaq, recently changed its name to Solmate. It launched a SOL-based digital asset treasury (DAT). The Solana Foundation backed this move. Brera expects to buy Solana at a discount from the foundation, according to a statement. The company also agreed to grant the Solana Foundation two board seats and share revenue from some projects.
Then there’s Sharps Technology (STSS), another Solana DAT. It holds over $430 million in SOL. An August filing showed the Solana Foundation committed to selling Sharps $50 million of SOL at a 15% discount. Solana Company, formerly Helius Medical Technologies, also announced a similar option. This Nasdaq-listed firm, holding about $482 million in Solana, can buy tokens from the foundation at a discount. The exact price savings were not specified.
Not everyone sees this as a perfect plan. One Solana DAT insider, who chose to stay anonymous, voiced some concerns. “I personally don’t think it makes a lot of sense to support many, many DATs,” they said. This person pointed out that the multiple of Net Asset Value (mNAV) for many DATs has come down. The mNAV compares a DAT’s stock price to the market value of its crypto assets. It shows if the DAT trades at a premium. When fewer Solana DATs existed, some did trade at a higher premium to their SOL holdings.
However, other players welcome the activity. DeFi Development (DFDV), a Solana DAT holding over $430 million worth of SOL, sees it differently. A spokesperson told The Block, “We think more buyers of SOL is positive for the ecosystem, so we welcome the new entrants.” This company hasn’t agreed directly with the foundation for discounts. Instead, it has bought tokens at a discount on the secondary market. These tokens were originally sold by the foundation.
The Solana Foundation did not respond to multiple requests for comment on these matters. It’s a curious silence, leaving some questions unanswered about their direct strategy.
An executive at a Solana DAT, one receiving direct support, offered a dose of reality. They said the aid isn’t always as valuable as investors might think. “Some of the [DATs] have tried to make a really big deal of it because they needed it for the fundraising,” the person explained, asking for anonymity. “Everybody wants to run around and use [the Solana Foundation] as a branding and marketing thing.”
They continued, “What does it mean to have the support of the foundation if it’s really just a 15% discount on a $50 million OTC spot buy?” It’s a fair question, suggesting the perceived value might sometimes outweigh the actual financial benefit.
The Ecosystem’s Pulse
Upexi, with $442 million in SOL, is one of the larger Solana DATs. Brian Rudick, the company’s Chief Strategy Officer, considers more Solana DATs a “healthy development” for the token’s ecosystem. He did admit that a larger number of DATs could create “valuation pressure, as greater supply can weigh on multiples.”
Upexi talks often with the Solana Foundation. But Rudick stated his company has not entered into any official agreement with the group. He expressed confidence in Upexi’s standing. “As the market absorbs recent supply, we’re optimistic that multiples can expand further as investor understanding and demand mature,” he said.
Forward Industries appears to be the largest Solana DAT, holding $1.5 billion in SOL. It launched just last month. Bloomberg, citing anonymous sources, reported the Solana Foundation endorsed this treasury. The company started with a $1.65 billion offering. This offering was led by Galaxy Digital, Jump Crypto, and Multicoin Capital. All these firms have ties to the Solana ecosystem.
Multicoin invested in Solana’s seed round back in 2018. Jump Crypto’s relationship with Solana goes back to 2020. Nasdaq-listed Galaxy Digital explored tokenizing its shares in August. It eventually did so via Solana. These connections show a deep web of support for the Solana ecosystem. Forward Industries did not respond to a request for comment.
Beyond Solana’s Shores
The Solana Foundation is not alone in promoting its token’s ecosystem through treasuries. Other foundations also offer support. The Tron DAO, Dogecoin Foundation, and Ton Foundation have all supported DATs accumulating their tokens. The Ethereum Foundation has also offered aid. This aid, arguably less direct than Solana’s, has gone to many ETH-based DATs. It funds protocol improvements and staking infrastructure.
If the Solana Foundation continues its current strategy, the number of Solana treasuries could keep growing. There are already well over a dozen, including Sol Strategies, Solana Company, and Mercurity Fintech. Each adds a layer to the ecosystem’s structure.
The launch of Mercurity Fintech was particularly interesting. The company stated it secured a $200 million equity line of credit agreement with “Solana Ventures Ltd.” Shortly after, Solana Ventures LLC, a subsidiary of Solana Labs, clarified its position. Solana Labs is the original developer of the Solana blockchain. Solana Ventures LLC stated it is “not affiliated or involved with any equity line of credit agreements with any publicly listed companies or entities.” This distinction between the Foundation and Labs is important. Mercurity Fintech did not immediately respond to a request for comment.
The newest Solana DAT on the block seems to be VisionSys AI. About a week ago, the company started a SOL-based treasury. Its goal is to build a DAT worth $2 billion. It plans to acquire $500 million worth of SOL within the next six months. This is an ambitious plan for a Nasdaq-listed company with a market cap of about $127 million.
A VisionSys AI spokesperson told The Block about their strategy. “We have interest from other holders to sell us SOL at a discount,” they said. “Which we think is as attractive, or even more so, than the deals being entered into by the Solana Foundation.” Through a subsidiary, VisionSys AI also forged an “exclusive” partnership with Marinade Finance, a prominent Solana staking protocol.
The VisionSys AI spokesperson added a prediction. They believe “the largest Layer 1s will all have multiple DATs.” This suggests a future where token accumulation by companies becomes a standard practice across major blockchains.
A larger investor in a SOL-based DAT believes crypto treasuries built around popular tokens like Bitcoin, Ethereum, and Solana will have an advantage. This holds true regardless of market trends. “It’s more buying and financing power on the way up,” the person said. “And more strategic levers you can pull in a bear market.” It paints a picture of these treasuries as long-term strategic assets.
