Solana Company Q3 Revenue Hits $3.4M as Staking Income Climbs
Solana Company reported $3.4 million in Q3 revenue, about $3.3 million of it from staking at a 5.9% net yield. Net income hit $105.2 million, but $102.7 million was an unrealized gain on SOL that can reverse if the token falls.
Almost all of the money Solana Company (NASDAQ: HSDT) brought in last quarter came from staking: about $3.3 million of $3.4 million in third-quarter revenue, up from $697,000 in the same quarter a year earlier. The company released the results on November 11, covering the quarter that ended September 30. Year-to-date revenue has reached $9.5 million.
The company earned 30,800 SOL in staking rewards during the quarter and restaked them rather than selling them. Its average net staking yield was 5.9% APY, compared with a Solana network average of 4.9% APY. Gross profit came to $2.7 million, roughly an 82% gross margin, against $594,000 a year earlier.
Net income was $105.2 million, compared with a $352.8 million loss a year earlier. That headline figure needs careful reading, because $102.7 million of it was an unrealized gain on digital assets. It tracks the price of SOL more closely than it tracks how the business runs, and it can reverse if the token falls. Strip it out and the operating picture is the $3.4 million in revenue and $2.7 million in gross profit.
Balance sheet and Pacific Backbone
As of September 30 the company held roughly 2.4 million SOL, with a fair value of about $288.2 million. Total assets stood at $292.6 million.
Pacific Backbone, its Asia-Pacific staking and validator cluster, had about 1.3 million SOL delegated at the end of the quarter, including 1 million SOL from third parties. Delegations reached about 1.5 million SOL by early November. The company itself draws the line from that outside stake to its income statement.
CEO Joseph Chee framed the quarter around that milestone:
"This was a milestone quarter for Solana Company. Our Pacific Backbone infrastructure went live, institutions entrusted us with a million SOL of third-party stake, and that confidence is already flowing through to our revenue."
Joseph Chee, CEO
Capital moves
The company priced a registered direct offering of about $15 million at a 5% premium to net asset value per share, and used the proceeds to buy roughly 125,000 SOL. In the quarter it also repurchased about $2.8 million of Class A common stock.
Chee also pointed to a new headquarters in Hong Kong and tied it to the company's Asia strategy:
"We are building the bridge that brings Asia's financial institutions onto Solana, and with our new headquarters in Hong Kong, we will be building it right where the demand is"
Joseph Chee, CEO
What it means
For a digital asset treasury firm, this report puts a second measure alongside the size of its token holdings: whether staking and validator operations produce recurring income. A 5.9% net yield against a 4.9% network average suggests the company's validator setup is earning above the baseline, though one quarter is a short record. The Asia pitch also arrives against a backdrop of friction in the region, with Chinese authorities halting a Solana event in Shanghai, a stop the PBOC has since confirmed.
