NEWTOWN, PA — Solana Company (Nasdaq: HSDT) generated $3.6 million in first-quarter revenue from its Solana staking operations and digital asset strategy, though sharp declines in cryptocurrency valuations contributed to a quarterly net loss approaching $100 million.
The company reported that staking rewards generated $3.4 million of quarterly revenue, representing the primary source of growth compared with the first quarter of 2025, when revenue totaled just $49,000 and did not include digital asset staking operations.
Gross profit reached $3.4 million during the quarter, compared with a gross loss of $72,000 a year earlier.
“Despite the volatility in digital asset markets during the quarter, we remain focused on the fundamentals: growing our SOL per share through disciplined capital allocation, generating consistent staking yield, and building out diversified revenue streams,” Executive Chairman Joseph Chee stated.
The company also repurchased approximately $3.5 million in shares during the quarter under its buyback program.
Operating expenses increased sharply to $103.1 million from $3.9 million in the prior-year period, largely because of non-cash losses tied to digital asset price declines.
Those charges included $89.2 million in unrealized losses on digital assets and receivables, $7.0 million in realized losses from strategic digital asset sales and $1.7 million in unrealized losses tied to digital asset fund investments.
Solana Company reported a net loss of $99.8 million, or $1.30 per share, compared with a net loss of $3.8 million a year earlier.
The company held approximately $193.8 million in digital assets and digital asset exposure at fair value as of March 31, including staked assets, restricted holdings and digital asset receivables.
Cash and cash equivalents totaled $4.4 million at quarter end.
During the quarter, Solana Company expanded its validator infrastructure strategy through a partnership with Jito focused on staking infrastructure and maximal extractable value, or MEV, capabilities.
The company also continued institutional staking and lending collaborations with Anchorage Digital and Kamino.
Cosmo Jiang, a general partner at Pantera Capital and member of Solana Company’s board, described the company’s staking strategy as an extension of institutional digital asset management practices used across broader crypto portfolios.
“Our average net staking yield reflects the institutional-grade infrastructure and active management approach that Pantera applies across its broader digital asset portfolio,” Jiang stated.
Separately, Solana Company appointed Madelene Gani as chief operating officer and deputy chief financial officer in April. The company said Gani previously worked at Web3-focused growth companies.
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