Solana (SOL) treasury companies are following the lead of Bitcoin (BTC) and Ether (ETH), where their adoption by public firms has elevated stock values and made headlines.
Digital asset treasuries (DATs) list publicly, purchase crypto, and aim to increase tokens per share. This offers a straightforward proposition for traders seeking crypto exposure through brokerage accounts, promising potential gains that could surpass spot prices.
Exchange-traded funds (ETFs) also offer crypto exposure to investors today, but DATs can reach the market more swiftly. Furthermore, premiums and discounts to net asset value (NAV) create built-in leverage without concerns of liquidation, allowing these instruments to trade apart from the value of the tokens they hold.
Solana treasuries exhibit lower liquidity compared to Bitcoin and Ether. However, with institutions already recognizing the name and willing to hold for extended periods, the expectation is that Solana treasuries can reduce sell pressure, attract more conservative capital, and demonstrate that the next crypto distribution war will be conducted in public markets.
In the past month, Solana treasury firms have gathered around 6.3 million SOL, amounting to over 1.6% of the token’s circulating supply and more than half of all SOL held within corporate treasuries.
Why Solana DATs look promising
SOL stands as the sixth-largest cryptocurrency globally by market cap, with its blockchain often regarded as a contender to Ethereum’s supremacy in smart contracts and decentralized finance (DeFi), recognized for its high throughput and minimal transaction fees. Yet, as a treasury asset, Solana’s digital asset treasuries are still less developed than those centered around Bitcoin and Ether.
In total, Solana treasury firms control about 2.46% of SOL’s supply, amounting to nearly $3 billion, per CoinGecko. Only four companies possess more than 0.01%, led by Forward Industries with 1.249%, followed by DeFi Development Corp (DFDV), Upexi, and Sharps Technology, each holding over 0.35%.
“We evaluated many layer 1s, and it became evident that Solana is leading the technology competition among them,” remarked Joseph Onorati, CEO of DFDV, in an interview with Cointelegraph.
“Ethereum still retains the mindshare, but when you look at actual usage and efficiency, Solana surpasses Ethereum in nearly every metric. Yet it trades at about one-fifth of Ethereum’s market cap,” he further indicated, hinting at his optimism about Solana’s growth potential.
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Solana treasuries provide investors with a traditional means to acquire exposure to the asset, including established brokerage accounts. Unlike Bitcoin and Ether, there are currently no spot Solana ETFs available, although analysts predict approval once the Securities and Exchange Commission returns to normal operations post the ongoing US government shutdown.
In contrast to ETFs, which passively reflect an asset’s price, Solana DATs can actively manage their holdings. For example, DFDV stakes its Solana, operates its own validator, and engages in DeFi strategies to generate yield and increase token holdings even in a stagnant market. While ETF applicants are beginning to incorporate staking features into their proposals, DATs possess greater flexibility to expand their token base.
“Digital asset treasuries are a superior vehicle. In the long run, they’ll completely replace ETFs,” Onorati stated.
Solana also holds an advantage in terms of familiarity and exposure among altcoins. Many institutional investors are already well-acquainted with its ecosystem and are inclined to hold for extended durations.
“The connection with FTX initially harmed Solana’s price and perception,” noted Thomas Chen, CEO of Bitcoin infrastructure firm Function. “However, despite the predominantly negative attention during that time, it also gave Solana considerable visibility among investors. It raised awareness that the ecosystem still featured real activity, genuine staking, and actionable products.”
In March 2024, the estate of bankrupt FTX revealed plans to sell 41 million SOL to institutional investors at a 68% discount. This transaction provided institutions with billions of dollars’ worth of SOL held under a four-year vesting schedule, effectively converting a market overhang into a long-term institutional investment in Solana.
Constraints in Solana DAT models
Despite their potential, Solana treasury companies encounter structural hurdles that complicate their scalability. Liquidity remains sparse when compared to Bitcoin or Ether counterparts, and Solana DATs are vying for the same investor pool.
“Liquidity comparison is crucial,” stated Tim Chen, global strategy lead at Mantle and brother of Thomas Chen. “[Strategy] exchanges tens of millions of shares daily, while Ethereum proxies are on the rise. Solana DATs, however, trade significantly less.”
Concentration risk continues to be a concern. While current Solana DATs hold merely a few percent of the total supply, the model would attract scrutiny if a single company began amassing a substantial share.
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Chen classified digital asset treasuries into three categories: Bitcoin-centric treasuries as pure store-of-value investments; Ethereum and Solana as a middle ground (sufficiently mature for institutions but still developing); and other altcoins that might create more dynamic models.
“Although those models remain in their infancy,” he added, “if executed properly, they could potentially outperform larger caps in relative impact because they’re crafted from the ground up to deliver value to the ecosystem, rather than merely to shareholders.”
Solana DATs are going global
Solana DATs are assisting the asset in maturing, and in the process, they may alleviate one of Solana’s inflation challenges. The network’s current inflation rate of 4.24% is designed to decrease gradually until it hits a long-term floor of 1.5%. Staking enables long-term holders to counteract that dilution, while treasury firms contribute by locking up tokens and demonstrating institutional confidence.
Mantle’s Chen indicated that Solana DATs can function as a supply sink only if new capital is introduced from traditional finance.
“You have to scrutinize the filings,” he said. “Are DATs acquiring new SOL, obtaining locked SOL, or taking contributed SOL from existing holders? Without new incoming flow, you’re merely shifting coins between pockets.”
As Solana’s corporate adoption expands, DFDV aims to advance the model further. The firm has introduced a “treasury accelerator” to support the creation of localized DATs in various countries, each with differing tax regulations, currencies, and investor bases. DFDV has launched Solana treasury franchises in South Korea and Japan.
The initiative is inspired by examples such as Japan’s Metaplanet and David Bailey’s Nakamoto model — public firms transforming their listings into vehicles for crypto exposure.
Critics frequently label such initiatives as rebranding efforts by struggling companies, but Onorati contends that it’s about efficiency, not desperation.
“These companies are not in distress,” he stated. “It’s merely the quickest route to market.” Once the crypto strategy gains traction, the original business often becomes secondary to the treasury operations that enhance shareholder value.
From mitigating inflation to global franchising ambitions, Solana’s treasury movement is blending crypto-native mechanics with corporate finance strategies. What originated as a balance-sheet experiment surrounding Bitcoin and Ether is now extending into Solana, a network noted for its speed, volatility, and growing institutional familiarity. Solana’s DATs symbolize the next phase where public companies directly engage in the ecosystems they invest in.
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