Solana Company posts $105 million profit, mostly a paper gain

Solana Company reported net income of $105.2 million for the third quarter of 2026. Operating revenue was $3.4 million. Almost all of the profit came from a rise in the value of the SOL the company holds, not from running the business.

Those results, released on 11 November 2026, cover the three months to 30 September. Solana Company trades on the Nasdaq under the ticker HSDT. It holds SOL as a treasury asset and earns staking rewards on it, one of a growing number of firms built around a single token. Year to date, revenue reached $9.5 million, up from $789,000 a year earlier. Joseph Chee, the chairman, president and chief executive, called it "a milestone quarter for Solana Company."

Where the profit came from

The headline number needs a second look. Of the $105.2 million in net income, $102.7 million was an unrealized gain on digital assets and digital assets receivable, according to the results. That is an accounting mark. The company did not sell any SOL to book it.

Think of it like a house that rises in value while you still live in it. On paper you are richer. You have touched none of it, and the number falls again if the market does.

Strip the token gain out and the operating side was close to flat. Revenue reached $3.4 million, up from $697,000 a year earlier, and almost all of it, $3.3 million, came from staking. Gross profit was $2.7 million, a margin of about 82 percent. General and administrative costs ran to $3.4 million for the quarter. Over nine months they reached $19.7 million, against $12.7 million a year before. The same shape showed up this quarter at bigger firms: Coinbase's third-quarter profit came mostly from crypto it holds, not from fees.

The staking business underneath the mark

A real operation does sit under the accounting. Solana Company held about 2.4 million SOL at the end of September, worth roughly $288.2 million at the time. During the quarter it earned 30,800 SOL in staking rewards and restaked them to compound the return. That is the recurring part of the business, the part that would still be there if the token price stood still.

Its average net staking yield was 5.9 percent a year, against a network average of 4.9 percent, the company said. That gap is the pitch to institutions: run the validators well and the yield beats the market. Staking pays a holder for helping secure a proof-of-stake network, and it is closely related to restaking, where the same staked tokens back more than one network.

Solana Company is leaning into that work. It pointed to Pacific Backbone, its validator network across Seoul, Tokyo, Singapore and Hong Kong, which it said went live during the quarter. About 1.3 million SOL was delegated to it by the end of September, including 1 million SOL entrusted by outside institutions. Chee said the company is "building the bridge that brings Asia's financial institutions onto Solana" and is opening a new headquarters in Hong Kong. Cosmo Jiang, a general partner at Pantera Capital and a board director, put the strategy plainly: "Owning SOL is a great start."

A paper gain that has already shrunk

Here is the catch with a mark. It moves both ways. The $288.2 million value on 30 September assumed a SOL price near $120. By 07:43 UTC on 12 November, SOL traded at $82.78, according to CoinGecko. At that level the same 2.4 million SOL would be worth about $199 million. Roughly $89 million of the quarter-end value has come off since the books closed.

None of that drop shows up in the third-quarter profit. The gain was fixed to the 30 September mark. Whatever has happened since then will land in the fourth quarter instead. Firms that report profits this way swing from large gains to large losses on the token price alone. Trump Media booked a $410 million profit on bitcoin price gains earlier this year. American Bitcoin reported $126 million the same way. In a down quarter the sign flips, and the loss is just as large on paper.

The company has not said it will sell. It holds the SOL and keeps staking it. So the loss since September is on paper too, for now. Paper.

What to watch next

Watch three things. First, the SOL price, because it still sets the reported profit more than the business does. Second, whether operating revenue grows enough to cover costs without the mark. Gross profit of $2.7 million did not cover $3.4 million of overhead this quarter. Third, how much outside money the validators pull in, since the 1 million SOL of third-party stake is the clearest sign the institutional pitch is working.

Capital kept moving in the meantime. The company bought back about $2.8 million of its own stock in the quarter, and $8.7 million so far this year. It also priced a $15 million share sale at a premium to net asset value and used the cash to buy about 125,000 more SOL. Total assets stood at $292.6 million on 30 September, down from $303.9 million at the end of 2025. Selling stock above the value of its assets lets a treasury company add tokens without diluting existing holders, as long as the premium holds. The next quarter will show how much of September's gain survived the autumn.