Sol Strategies Inc (STKE) 2025 Q3 法說會逐字稿

Good day, and welcome to the Sol Strategies Inc. fiscal 3Q 2025 earnings conference call. (Operator Instructions)

On the call are Leah Wald, Chief Executive Officer; Doug Harris, Chief Financial Officer; Max Kaplan, Chief Technology Officer; and John Ragozzino with ICR. At this time, it's now my pleasure to turn today's conference over to John Ragozzino with ICR. Please go ahead, sir.

Good afternoon, and thank you for joining the Sol Strategies fiscal third-quarter 2025 earnings call.

Today's discussion based on information as of August 26, 2025, will include forward-looking statements subject to risks, uncertainties and market volatility. Actual results may differ materially from these statements due to factors beyond our control. We'd like to refer you to our latest press release, reports and SEDAR+ filings available on our website and through our SEDAR+ profile for detailed risk disclosures and assumptions, including that no significant events outside the normal course of business.

Please note that past performance and current trends in the digital asset sector may not continue, and listeners should not place undue reliance upon them. The company does not undertake to update forward-looking statements, except as required by law. This call will also reference unaudited performance metrics for the quarter ended June 30, 2025, as outlined in today's press release.

Unless otherwise noted, all dollar amounts are in Canadian dollars. Leah will review our progress towards our strategic objectives in the digital asset sector. Max will then provide an update on our operations and technology, and Doug will discuss our quarterly financial results before we open the floor with questions.

With that, let me turn the call over to Leah.

Thank you, John, and good afternoon, everybody. This has been another transformative quarter for Sol Strategies. As I look across the digital asset landscape, it's increasingly clear that fiscal 2025 marks a true inflection point not only for our company but for the broader institutional adoption of blockchain infrastructure.

We're operating against the backdrop of meaningful regulatory progress. The Genius Act, advancing in Congress and the SEC's project Crypto initiative are providing the clarity and consistency that public companies have long needed to participate more fully in digital assets. This isn't just incremental progress, it's laying the foundation for how digital assets will be integrated into the global financial system over the coming decade.

The pace of adoption has been remarkable. Year-to-date Digital Asset Treasury, or DAT, companies have raised over $39 billion. Today, there are more than 290 publicly traded companies that are deploying digital assets on their balance sheet, representing over $100 billion in aggregate allocation.

For public investors, DAT companies offer something unique, SEC-compliant, liquid and efficient vehicles to gain crypto exposure through equity markets. But with rapid adoption comes market saturation and not all DAT models are created equal. The 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 represent 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.

Our operational metrics this quarter demonstrate the strength of our execution. We surpassed $1 billion in delegated sold with almost 7,000 unique wallets taking to our validators, reflecting growing trust from both institutional and retail delegators. We maintained perfect 100% uptime on our core lane validator and delivered APY's consistently exceeding network averages.

On the capital markets front, we continue advancing on our US listing strategy with strong progress towards NASDAQ uplisting. We completed the required stock consolidation and our recently filed shelf registration provides us with the flexibility to raise capital opportunistically when market conditions and our valuation create accretive opportunities.

Importantly, this capital is not required to fund operations. Our business is self-sustaining through validated revenues and staking yields, but it does provide optionality to expand our sold treasury and accelerate growth when the right opportunities arise. We've built strategic partnerships that validate our position as an institutional-grade infrastructure industry leaders, including BitGo, (inaudible) test, Neptune, Pudgy Penguins and Solana Mobile have selected Sol Strategies as their trusted partner.

Most recently, we're proud to welcome ARK Invest as our staking provider for their digital asset revolution fund. These partnerships aren't just business relationships. They represent our deep integration into both the financial mainstream and Solana ecosystem.

We've also launched a public-facing done analytics dashboard that provides real-time on chain visibility into our validated revenue and treasury performance. This level of transparency reflects our commitment to building trust and holding ourselves accountable to both investors and the broader community.

The distinction is critical in an increasingly crowded market, we're not simply a treasury vehicle providing exposure to Solana's price movement. We're simultaneously a significant treasury holder and a critical infrastructure provider to the Solana ecosystem itself. The dual role strengthens our credibility with institutional delegators creates reoccurring high-margin revenues and ensures we're directly contributing to the resilience and decentralization of the network.

In doing so, would become not just the beneficiaries of Solana's growth, but the builders of it. As we move forward, our vision remains clear, to establish Sol Strategies as the premier institutional grade Solana infrastructure platform.

Through our DAT++ model, validator leadership and strategic partnerships, we're building what we believe will be one of the most efficient and durable value creation engines in the digital asset sector. 2025 is proving to be the year where differentiation in digital asset treasuries truly matters. We're confident our strategy positions us not just to participate in the growth of institutional blockchain adoption, but to help lead it.

Now let me turn it over to our CTO, Max, to discuss the technical infrastructure that makes this all possible and where the industry is heading.

Thanks, Leah. Let me start with what matters, performance. This quarter, our Orangefin validator consistently ranked in the top three validators on the entire network in terms of APY. Our returns to stakers far exceeded any major players in this space, including names such as coin-based Kraken, Finance and more.

Our biggest validator by stake, Laine, continued its streak of 100% uptime for over one year now. With our high yield consistent uptime brand recognition and compliance framework, it's for these reasons we crossed over CAD1 billion in delegated [Sol] this quarter with over 7,000 unique wallets trusting us with their assets. That's not luck, that's good old-fashioned execution paying off.

Our goal on the staking side of the business is really simple: offer the best product with the lowest cost for our clients. Many businesses out there charge extremely high conditions in the EMA compliance reporting and business development. With automation and strong brand recognition, we are able to charge lower commissions and offer our customers a better product at a lower cost. This is the model we are using to continue to grow our staking business, which is continuing to grow and picking up bigger and bigger clients.

One of the areas of our business we are extremely excited about is the growth of one of our new verticals, white label validators. This quarter, we onboarded Solana Mobile as a new client for our white label validator business. The Solana mobile validator is a default validator for Solana Mobile's new phone, The Seeker.

The Seeker just began to ship a few weeks ago, had over 150,000 preorders and one of the most impressive launches in history for any phone. And just under two weeks, the Solana mobile validator already has over 1,500 unique wallets speaking to it, an extremely impressive stack considering most devices have not even been shipped yet. We are very excited about the launch of the Seeker, which places Sol Strategies in front of 150,000 potential customers through the Solana Mobile validator we operate and share in the revenue from.

Additionally, I want to talk about some efforts we completed this quarter to help the Solana network overall. This quarter, we open sourced a tool we call Solana Validator Failover. This tool helps other validators on the network, ensuring high uptimes, keeping the network resilient and fast.

Crypto was built on the ethos of open source technology. At Sol Strategies, we are passionate about being good stewards for the network, and we'll continue to build and launch tools that benefit all network participants. We are extremely proud of what we accomplished this quarter and excited for what we have planned for the future, but we are also excited for the upcoming technical developments coming to the Solana blockchain.

Many (inaudible) Solana improvement documents are being proposed, implemented and shipped, which brings significant improvements to the Solana blockchain. One of the ones we are most excited for is (inaudible) 326, which is the first SIMD behind Alpen Globe. (inaudible) is a proposal for Solana's new consensus algorithm, which could bring slot times down to around 100 milliseconds from 400 milliseconds.

This opens up all new types of use cases for Solana, including more applications for trading. Speaking of exciting innovations coming to Solana, Jito, one of Crypto's most successful protocols, also recently announced BAM, known as Block Auction Marketplace. Sol Strategies was picked up as an initial launch partner for BAM, which allows applications more customizability around how their users' transactions get put into blocks.

I expect BAM to be a massive success for Solana. We are excited about Solana's growth and how well positioned we are to be an important technology participant in that growth.

With that, I'll pass it on to Doug.

Great. Yes. Thanks, Max. For the June quarter marked another important step in the transformation of Sol strategies. This is the first quarter in which our results fully reflected contributions from all of our recently acquired validator operations.

We saw strong top line growth generating just over $3 million in staking and validator income. Looking ahead, we expect continued revenue growth as we scale both our treasury and third-party delegation business with further upside potential from any appreciation in the price of Solana.

I would also like to highlight a new revenue initiative. During the quarter, we began actively managing our treasury with available financial tools to enhance yield. While income from this activity was modest at approximately $30,000 in the quarter, we see significant opportunity to grow this contribution as our treasury expands.

For the three months ended June 30, we reported comprehensive income of approximately $900,000, a solid result given several nonrecurring expenses incurred during the period. These included $900,000 in legal fees related to our Nasdaq listing process, prospective filings and fundraising activities as well as $2.4 million in transaction costs associated with the financings completed in the quarter.

Excluding these onetime items, operating expenses were approximately $1.7 million largely reflecting corporate overhead and professional service fees tied to ongoing operations. Adjusted EBITDA for the quarter was $800,000. This was derived from net income before taxes adjusted to exclude $4 million of amortization from validator acquisitions, $2.4 million of nonrecurring transaction costs and $1.8 million of stock-based compensation. We provide this measure to give greater clarity and underlying operating performance by excluding significant noncash and nonrecurring items.

At the same time, we continue to emphasize comprehensive income as our primary profitability metric, in line with US GAAP peers following the late 2024 update on cryptocurrency valuation treatment.

Turning to the balance sheet. Our Solana Treasury increased significantly over the quarter ending at just over $90 million compared to $48 million last quarter. Total assets rose to $164 million from $125 million at March 31, primarily reflecting the increase in Solana Holdings at that time. Liabilities grew to $62 million from $40 million in March, mainly due to the increase in convertible debentures.

Overall, we continue to strengthen our balance sheet, expand our validator and staking revenues and grow our EBITDA base. We are excited by the opportunities our treasury and validator assets create for us as the Solana ecosystem continues to expand.

With that, I'll turn it back to Leah.

Thank you, Doug. As we step back and reflect on the quarter, the story is clear. Sol strategies is executing across all fronts. We're strengthening our competitive moat as the premier Solana focused DAT++ company by delivering faster organic treasury growth than peers, expanding validated revenues through third-party delegation and continuing to accumulate Sol in a capital-efficient manner.

Our uplisting progress in shelf registration are enhancing visibility and providing flexibility to scale with institutional demand. and our partnerships with leading institutions, custodians and consumer platforms demonstrate the trust that we've built in the market. What excites me most, however, is the road ahead. We are not just building a treasury vehicle, we are establishing an institutional-grade Solana infrastructure platform at the center of blockchain adoption.

Solana has emerged as the leading layer 1 for high throughput, low-cost applications and its importance will only grow as tokenized real-world assets, payments and new financial rails take hold globally. Looking forward, our vision is clear, to make Sol Strategies synonymous with institutional-grade digital asset infrastructure.

Through disciplined growth, validator leadership and targeted partnerships, we aim to create one of the most efficient and durable models for long-term value creation in the sector. Fiscal 2025 is proving to be the year where differentiation in digital asset treasuries truly matters, and we are confident that our DAT++ strategy gives us the growth engine and positioning to lead. Our business is built on the foundation of underlying yield generation supported by technology and infrastructure we actively manage.

By combining reoccurring revenues from staking and validation with investments in the core networks themselves, we were able to create durable and sustainable growth. This approach not only delivers value to our shareholders but also strengthens the ecosystems we operate in, ensuring that the technology and infrastructure continue to evolve and support broader adoption of decentralized platforms.

We're not just holding Solana, we're building it, and that's why we'll be here long after the tourists go home. With that, we'll now open the call for questions.

Operator, please go ahead.

(Operator Instructions) Bill Papanastasiou, KBW.

Congrats to the team on all the progress. I just have a quick question for the team here. Max, maybe you could walk us through your tech stack roadmap and what's in store for building or buying more Solana? If you could rank that based on your priorities, that would be appreciated.

Yes, absolutely. I'll say this is that like we view the validator business as something really, really core for many reasons, right? Number one is it helps us accrue more Sol, right? It's a real revenue-generating business and listen, I'm biased, but I think we're doing a good job with it, and I think the results speak for themselves.

Secondly, the important thing of validators is really this is we really believe in the Solana network as well, right? And as a validator, really high level, the more transactions that happen on Solana, the more we benefit as a business because we are getting those transaction fees, right?

So the reason we're running validators here is really because we love Sol, we want to accrue as much Sol as possible, but we also are really, really believe in the Solana network as well and we won a big stake in it, (inaudible) not intended there. But we really want to -- we think to the Solana network is going to continue to grow, especially with things like RWAs and all these really new exciting instruments that are coming on chain.

The more successful those things are going to be, the more we're going to directly benefit from that. So to answer your question, we're going to continue to focus really on validators and attracting more stake. And I think we're doing a good job this quarter because of the fact we just announced Arc as a partner and things like that.

But at the same time, we really view it as two verticals. We have the treasury side, and we have the validator side. But really, you can abstract that out of the tech side, right? So hopefully, that answers your question. Let me know if not.

Yes. No, it's very clear. Oh, sorry, Leah, go ahead.

No, I appreciate it. And maybe I'll just cap it off, Max, I think that you covered everything. That was fantastic. Maybe I'll have fun with the buy side of the sector and of your question. I like it. So Max is absolutely right. We've seen both that organic development. And also, we are always looking for those strategic acquisitions.

It's through the Orangefin acquisition that we got, Max, and that was maybe the biggest asset that came through that acquisition. We've had a lot of success in the past for those acquisitions and our appetite for M&A hasn't changed. So we see that build and buy approach as the reason that we've created the 19th largest validator operation out of over 1,000 validators on Solana.

And again, as mentioned, that $1 billion assets under delegation that we reported tomorrow. So I guess that what's important to take away is that we're building innovation, that's on the build side regarding traditional acquisitions. That's also where from the innovation side, we're developing proprietary infrastructure.

So I did want to call out which gets a little unnoticed that we did launch the first mobile app for native Solana staking. And that also automated validator management platforms and real-time Onchain reporting all under Max, so kudos to you, Max. So the last takeaway maybe just that what is the strategic view, how do we really think about the build versus buy. We see that validator acquisition strategy does create powerful network effects.

We think we're going to see a large consolidation in the DATs this year. And every major validation operation that we acquire validates, pun intended, I guess, our strategy and also brings that established institutional relationships that we're continuing to build.

So we see ourselves as watching the early stages, if you will, of a self-reinforcing cycle where validator consolidation drives operational efficiency, which drives better yield, which drives more delegation, and that creates this virtuous loop that transforms us hopefully from the start-up that we were last year to where we're just on the run to really that dominant infrastructure provider where we're trying to be.

That was very helpful, and I appreciate the great color. Looking forward to see you guys take the lead under that DAT++ category.

Brett Knoblauch, Cantor Fitzgerald.

Thanks for the question. As I look at kind of where the business is trending from both a delegated and maybe stake perspective, continued very strong growth quarter-over-quarter. How should we think about the pace of maybe Sol being delegated to your guys' validators? It seems like the Solana mobile app has the potential to meaningfully inflect that higher, though, I would assume retail might be a bit lower on a per wallet base from the amount of Sol being staked.

But generally, do you think that we're -- the trend line we're seeing now is going to continue? Do you think we see faster growth in delegated Sol? Or just generally, how should we think about that trend?

Yes. Brett, thank you so much for joining, and I'll start as a dictator over here because I like the question, and then I think I'm going to pass it to Max one more time. Definitely excited and do believe that we are in the first innings for sure on institutional involvement in this ecosystem. If you even take the advances in tokenization, I think that's a great example to look at.

We haven't even launched or took a stance yet or seen most of the real-world asset or funds on that have expressed desire to tokenize on rails yet. A lot of these trends, including BlackRock had mentioned their desire to launch on Solana rails. So just so much hasn't happened yet that we cannot see such an immense future of potential.

And as you're aware, and everyone here, the exciting thing is it's a flywheel for our firm, whereby the success of the -- success of the network directly correlates to revenues for us because we are running those validators. So we're very excited on that front.

I think also something that's important to note is that Genius Act that I just spoke about and importance there. We are seeing such regulatory tailwinds. The DC impact is just incredible. All of us know that. But I think it's just starting to take off. We haven't seen the Solana Sol stake ETFs for spot being launched yet. We've seen (inaudible) shares. But we haven't seen the filers, the issuers approved yet by the SEC. So that's going to be a huge catalyst as well.

Those have seen over $1 billion in AUM across the Swiss 6 and other European exchanges, very successful in Canada as well with purpose (inaudible) and 3IQ. So we're definitely getting there. You have SAB 121, and that unlocks the bank custody services. You had Paul Atkins Smith (inaudible) SEC enforcement cases.

And I think the big ones to note here is that crypto is now allowed in 401(k) accounts. And that's a $7 trillion addressable market. So the institutional partnerships we have with ARC, PICO, TETRA, we all see that as having accelerated after regulatory clarity and Max has stewarded the SOCI, SOC2, ISO 27001 certification. So we have worked really hard to position ourselves as a key player for institutions because most of them require those certifications.

So if we could get a portion of that retirement market, we'd be very happy over here, but that's definitely something that we're going to be going after. And as we become -- as Nasdaq approves our application, hopefully soon, again, pending regulatory approval or pending approval by the Nasdaq. Our goal in the US is to start having boots on the ground with RIAs, family offices, we're already speaking to issuers and just try to take over that market. So coming in with force.

Awesome. Congrats on a great quarter.

John Roy, Water Tower Research.

You were mentioning obviously the staking wallets that you've got recently. Could you give us some more color on Solana Mobile? And I believe the new phone that was out recently the Seeker phone, some color on that would be wonderful. And then I have a follow-up.

Great. And it's great to have you here. Thank you again. That is squarely a question for you, Max. So tapping Max in here, but it's been just enormous growth because of that partnership with Solana Mobile. So a very exciting partnership indeed.

Max, can you shed a little more light?

Yes, sure, absolutely. So there's an entity, I would say, within the Solana ecosystem called Solana Mobile. And it is a phone. The phone is called the Seeker. What it really is, is it's a phone that really is putting crypto first. And what do I mean by that is that, there's a few problems that the phone solves. But one of the ones that's really interesting, and I can talk about this firsthand as there's kind of a duopoly within the app stores today between Apple and Google.

And one of the problems that crypto apps faced was a lot of developers and companies like big companies would go and try and put an app in the App Store and one of two things would happen -- when I say app store there, I mean between Apple and Google.

So one of two things would happen there. One, they would get outright rejected. Not all the companies are, but there's plenty of companies that got outright rejected; and two, it's pretty well out there that Apple and Google take really high fees in terms of digital goods, 30% at times. And there's been some famous lawsuits with companies against Apple and Google, where the results are favorable towards developers.

But Solana really took an approach of, hey, let's go and build a new phone. And what they actually did was there's actually a separate app store within the Solana mobile phone called the Seeker. On top of that, there's some really cool security features of it that I won't get into the technical details of, but it keeps your private key more secure and things like that.

To talk a little higher level with 150,000 preorders, which is a lot of devices. And those phones are really just starting to ship now. And one of the things the Seeker did was it actually shipped with a wallet, and inside that wallet, the default validator to stick to is the Solana mobile validator, which we are now running as part of our new white label validator business, a new vertical that we're running, and that's our second white label validator business.

One of the cool things -- another cool thing, I guess, I should say, is that we do make all of our data public and our Dune dashboard. And if you look at unique wallet staking, it's just been like a straight line up really because of the impressive work that Solana Mobile did in terms of just distribution.

And a lot of these phones aren't even shipped yet in terms of how many there are. I'm not privy to that -- how many are shipped versus how many aren't? I'm not privy to that. But I know a lot of people that haven't even gotten their phones yet.

So in summary, the Solana mobile phone is really a phone that's dedicated towards aspiring crypto businesses and developers that are looking to keep 100% of their profits and also be able to just get distribution. And we're really excited that we also have an app inside the Solana Mobile App Store for our Orangefin app as well.

So we're really trying to -- we're definitely really excited about it. We support it in two different ways with the running the validator and also having an app in the App Store. So hopefully, that answers your question. It's a very good one.

No, that was excellent. As a follow-up, certainly, congratulations on going over $1 billion in assets under delegation. I was wondering, you talked a little bit about the flywheel and how it all relates with acquisitions, et cetera. Do you feel like you will get another level of acceleration if you see more regulatory clarity out of the US?

I'm really talking about to clarify stuff that they're talking about. I don't know what's going to happen this year or soon, but certainly, that seems like that would put the pedal to the metal at that point.

I'll jump in on this one. That's exactly right. And for us who have been in the digital asset space for a while, I mean, this is just a new frontier. We're not used to this in all the different support that we've seen from the SEC and across D.C. effectively, every regulatory body is helping support crypto companies with regulation and clarity to your point about the Clarity Act.

So that's only helpful for us, especially as we look to grow our base of investors as well as our technology in the United States. So absolutely. We're following D.C. very closely, obviously, very close to the ground on SEC approval of stakes Sol [EPS] and generally how the SEC is engaging with the community on staking, providing more clarity there.

As a Canadian issuer, we know what's going on in our background here in our backyard, but we're just seeing so much opportunity in the US that we also think that cross list on Nasdaq will unlock those opportunities beyond market liquidity. So very much following DC. I was born and raised a Washingtonian, so maybe I couldn't stop myself anyways, but no, it's definitely a new year here, and I think that it's going to only continue.

John Todaro, Needham & Company.

Congrats on the quarter here. I guess I just wanted to take a step back and go to some of the earlier comments that were made. How do you marry more financial products which benefit the Solana ecosystem in Sol, but then also maybe increases the competition on your part and maybe increases the competition on getting investor interest?

How do you just kind of marry the two? And I guess, how does that look near term? And then what are you thinking three, five years down the road?

I'll jump in here. John, thank you for joining. And great question because I think it's a two-pronged question truly. I think it's that DAT co and differentiating as well as trying to support the new competitors that are out as well as absolutely supporting the Solana ecosystem. Is that also taking away potential clients that would be staking to our validators if we're generally pushing them to potentially other custodians that have a preference towards others.

How do we walk that fine line of supporting the ecosystem and being that spokesperson when maybe it doesn't lead to investment specifically for us. And that's definitely something that I know at least the difficulties of very clearly coming from Valkyrie and being one of the first issuers to launch structured products in a market with a lot of competitors, whereby I still always believe that a rising tide is what you'll see.

And if you're out there educating, it will always be a rising tide by working with collaboration and there's no downside to education. That's why it's just been remarkable with Larry Fink on TV every day and all the other supporters that we've had teaching about the different blockchains, their differences and what they can and can't do, what they're supporting, what they're not and why. And this is what matters.

But going back to the DAT question. There is definitely a lot of competitors coming out. Now again, they fall into that first bucket that we've talked about first or second tier bucket that we talked about of DAT where you have static Holdings, which is Tier 1, Tier 2 being static holdings -- or holdings that are stake to validators that aren't theirs, thereby only getting 1 part of the equation of that yield.

And then us as that DAT++ in the market who's actually yielding on both sides of the equation while also building tech. So we squarely see ourselves, again, as you can see within the name as a DAT, but with that plus plus element that just takes us to your question, what's in store for the three to five years that takes us there for actually being a very serious staking infrastructure provider three to five years from now that also has the capabilities to acquire our way and build our way into other verticals as the environment changes.

And as mentioned earlier today, the DAT Co, right, the digital asset treasury company. So some people say DAT, some people say DAT Co, I'll say DAT Co here. But the DAT Co space does control and over $100 billion in digital assets, and there were 15 new entrants in just 30 days is what I just read.

So corporate purchases exceeded ETF inflows for the three straight quarters. So we all thought that the ETFs were creme to (inaudible) of what you were seeing with institutional participation, but it really is this DAT Co environment. So the way that we're trying to support is, again, by pushing the pillars that make Solana important that we believe in by open sourcing technology by building on Solana, we still aim to be first -- the first public company to tokenize their stock on Solana, that is still important to us and continuing to build.

So be friends out there yet also very vicious competitors in regards to promoting just our key difference of DAT++ and that we actually believe that, that model will matter in the future by compounding our treasury organically through the validator rewards.

I appreciate the viewpoints and congrats again.

(Operator Instructions) Kevin Dede, H.C. Wainwright.

I was wondering if you might talk about the process that you're working through to list in the States, given you've offered so much focus on reg changes in the States versus the OSA.

Yes. And it's always great to hear from you, Kevin. So as you know, I can only mention what's public. And actually, I'm very happy you asked the question because I think there was confusion around some of the events recently. All of the stock consolidation, other things we've done have been very specifically to progress that Nasdaq application listing forward.

So we completed the (inaudible) stock consolidation that was done on August 5, again, to meet that Nasdaq price requirement. There's also been progress done on the regulatory and other listing requirements. Our 40-F was approved by the SEC. So we're in final stages now of continuing to move forward on Nasdaq for that final approval.

And as you can imagine, not just enhanced visibility do we want the institutional investors as soon as we can access the Nasdaq market by something very important to me is is also to move forward, start speaking to other allocators and issuers to hopefully have inclusion in indexes and thematic ETFs.

And is the validator that you're running for Sol Mobile under that white label umbrella. Is the benefit there just that Solana sits on your validator nodes? Or is there any sort of software licensing or any sort of affiliated alternative revenue stream that I might be missing?

Yes. Great question. Max, I'll tap you in here, and I think that there's a lot to that that we can speak to.

Yes, absolutely. And thanks for the question. So the validate we're running for Solana Mobile, it's a white label validator. And what I mean by that more specifically is that it is a whole separate validator that is dedicated to Solana Mobile. If you were to look it up on chain, I'm not saying you should, but if you wanted to go -- to do that, you would see a new validator that's running on the Solana network called the Solana Mobile validators.

The benefit to us specifically is that there's a revenue split, right? And with the revenue that is generated from the validator, we are getting a portion of that, right? So like we're doing two things there. So we've built one -- like I do want to talk a little bit about something here. We've spent a lot of time automating our operations so that we can do things like this.

And I think our team is doing an awesome job in terms of just building some cutting-edge infrastructure to go and do this, right? We've written blog posts that have been well received. We've built open source tools and other validators are using.

And then we also have our own proprietary stuff. And what we talked about here is we were able to spin up validators for new entities that want to come on and run a validator just like Solana Mobile did. There might be other businesses out there that want to run a Solana validator because it is a profitable business, if you can scale it out.

So specifically to us, the real benefit here is that as the validator grows, the revenue that we generate as well as, of course, Solana Mobile goes up, so I want to be -- just to be like a very clear (inaudible) you run four validators on our own that are 100% owned by the company.

And then as part of our white label validator, we are now running two validators on behalf of other entities. Solana Mobile and Pudgy Penguins, which is really PENGU which is their token and Pudgy Penguins is one of the biggest brands in crypto. They have toys all over Walmart, and things like that.

Yes. So Leah, you talked at length about your M&A perspective. But I guess I'm still a little confused. I'm not sure if you're targeting technology development? Or if you would look for other Sol treasury companies that might be suffering at discount to NAV. And in building your accumulated sole treasury?

There's definitely opportunities across the spectrum, and we're looking at all, so we're most used to the validator acquisition that we've done in the past, but we're looking across the spectrum of different technologies that have been built in Solana that are very interesting. But I do think we're going to see a lot of consolidation across the market for the various gaps with similar tokens.

I also think that you'll likely see consolidation of underperforming [DATs] and transfer of the tokens on their balance sheet into tokens of the acquirers engaging in an investment thesis. So looking at all those opportunities very actively right now. Very good question.

You're also holding coins obviously, other than Solana, such as Sui. And I'm wondering if you're thinking about building some of the technical developments into those chains.

Yes. Good question. So we acquired Sui validators alongside the acquisitions of Orangefin as well as Cogent. So we were running those as just small passive income in the background, but quite nominal amount of income that was generated. There was no concerns around it. It was effectively the same lift to continue doing so.

However, very nominal amount on the about notionally nominal amount on the balance sheet and definitely not a key focus. But we're definitely, to your greater question, I believe, doing a lot more and being more strategic with the (inaudible) Sol and some of the other tokens that we've decided to invest in as investing in the ecosystem.

Again, our core treasury is and will always be Sol and taking it to our validators, the DAT++ that we've been hammering on this call. But we are making, if you will, strategic reserve ecosystem asset investments for our balance sheet and projects that we think are of huge opportunity.

Max, would you want to talk a little bit more about what we're thinking on the (inaudible) Sol front and a couple of the others and why we started looking and more actively participating?

Yes. Just to talk about the SUI comment you mentioned there. We are running SUI validators, but our (inaudible) and sole focus is Solana, right? So I want to make that clear. On (inaudible) and JCO, we are holding JitoSOL. And to be very, very clear, that is stakes, which we are earning revenue from in really a different way, but JitoSOL is stake Sol and you are earning revenue from that. With JitoSOL itself, it's an algorithmic stake pool.

And I know those are some fancy words there, so I don't want to go like too deep on that. But one of the things I want to mention on JitoSOL is that actually a part of the delegation set with (inaudible). So Orangefin is the third ranked validator inside the (inaudible) stake pool. So a good portion of the funds that -- like the overall funds of Jito sold actually get states to the Orangefin validator, which is our validator, right?

There are some benefits of liquid stacking versus native staking, which I won't necessarily get into on this unless we want to -- but the Jito ecosystem is really interesting to us. Because of BAM, which I mentioned, which was really well received. Jito is really one of the most successful protocols in all crypto, if not the most successful.

And we were just announced as a launch partner for BAM, which is one of the most exciting developments on Solana. So we really like to. We really like the tool, the Jeto team, and we are holding a small portion of our treasury in Genosy.

So while I have you, Max, just one other question. For own validator nodes and two that you're running on your weight label. But I'm just kind of wondering how they're separated and, I guess, in physical server operation, what kind of redundancy you've got and how that complements the 100% uptime that you were talking about at Laine?

Yes, absolutely. Great question. Well, I'll start high level here is that I want to say we're ISO 27001 certified, SOCII certified. And the reason I say that is because we hold ourselves to high standards, and we view those as like the minimum, right? But part of those certifications is uptime and availability to go a little deeper into that question.

Every validator and what I mean by validator is like when you mentioned those six, you talked about four of our proprietary two of our white labels. I'm talking about those like in the -- when we're talking about validators, but each of those actually have an active and a passive server in a completely different data center across the world, right?

So in the event of like a disaster happens, which -- and there's different types of disasters. One of them is just like most obvious one, like your hard drive crashes or something, we get automatic -- we could sail over to the other server and have that validator up within minutes and potentially even less, right? So to really ensure a high uptime.

The second type of disaster we look at is there's also compliance disasters, right? And that's another reason. That's another thing we look at in terms of why we run validators in different data centers across the world. We have really what I would consider world-class monitoring, where we have a 24/7 engineering team here across the -- spread out across the world, ready to dive into any incident at any moment.

So if it's 3:00 AM for myself, it's 3:00 PM for someone else, and we're ready to go as well as building out automation, like the cool thing about these is that one of the benefits of Solana is that it moves really quickly. For our business, it is great because that's what made Solana successful, but what really actually makes those upgrades like roll out to the network is validators upgrading.

And with our model, we've actually automated all the upgrades, thanks to the great work of the team. And we're really able to spend a little time there and are really focused on monitoring and preventing against all sorts of types of disasters, which we've seen just -- I've seen in past lives at other companies like when I worked at Kraken.

And even here, where we -- listen, like things come up and things happen. And we have incidents, but we're ready -- we're prepared for really anything. So we're running here a world-class shop. We have redundancy on everything, and we're prepared for any disaster, if that might come.

And there are no further questions on the line. I'll turn the program back to management for any additional or closing remarks.

Yes. Everybody, thank you so much for joining us today and also for your continued trust as we execute on the strategy. Looking forward to updating you next quarter as we keep building on this momentum and deliver long-term value for our shareholders.

I promise we're all going to be working very hard over here. Have a great day.

This does conclude today's program. Thank you for your participation, and you may now disconnect.