Despite Gains from Staking, Solana Records a $30.3M Loss in Q2

Despite generating $2.5 million in revenue, primarily from staking its SOL holdings, Solana Company has reported a second-quarter loss of $30.3 million.

On August 14, Solana Company announced that staking brought in $2.512 million of its $2.526 million revenue for the quarter, while other operations contributed only $14,000.

In comparison to the same quarter in 2025, when revenue was $43,000, the Nasdaq-listed company saw significant growth thanks to the establishment of a sizable Solana treasury. Nonetheless, revenue fell approximately 30% from the $3.6 million reported in the first quarter, based on first-half performance.

In Q2, the company earned 31,200 Solana (SOL) through staking rewards and automatically restaked the tokens. This approach enabled the holdings to continue accumulating rewards instead of being converted into cash.

The cost of revenue amounted to $77,000, resulting in a gross profit of $2.4 million, reflecting a gross margin of about 97%. However, the high margins from staking were insufficient to cover operational expenses and losses associated with the company’s digital assets.

SOL sales accounted for the bulk of quarterly loss

Operating expenses reached $35.1 million during the quarter, a rise from $3.3 million a year prior. This led to a $32.7 million operating loss, compared to a $3.3 million loss in Q2 2025.

A realized loss of $25.4 million from digital asset sales was the primary driver behind the increase. During the earnings call, management indicated that the loss resulted from “strategic sales executed as part of our capital allocation program.”

On the other hand, the accounts included a $2.4 million unrealized gain on digital assets and receivables. Solana Company also reported a $298,000 unrealized loss on a digital asset fund investment and a $682,000 loss on digital asset derivatives.

Administrative expenses grew to $11.1 million from $3.3 million in the same quarter of the previous year, with around $6.8 million attributed to severance costs related to the sale of the PoNS medical-device business, leading to roughly $4.3 million in other administrative expenses.

During Q2, the company successfully completed the sale of PoNS, moving away from its previous medical device focus, and reported a $3.1 million gain from the transaction, which somewhat mitigated the overall operating loss.

Nonoperating income reached $2.4 million after accounting for the gain from the sale, a $322,000 change in the value of a derivative liability, and $259,000 in other expenses, largely due to currency fluctuations between the Canadian and U.S. dollars.

Overall, after these adjustments, the company registered a net loss of $30.3 million, or $0.38 per basic and diluted share. A year earlier, the loss stood at $9.8 million, or $79….

Solana Company’s loss for the first half reached $130.1 million

For the initial six months of 2026, revenue climbed to $6.1 million from $92,000 in the same period of 2025. Staking accounted for $5.9 million of this total, while other revenue contributed $218,000.

First-half operating expenses surged to $138.2 million, which included an $86.8 million unrealized loss on digital assets and receivables. Additionally, realized losses on digital assets totaled $32.4 million, and the digital asset fund investment incurred a $2 million unrealized loss.

As a result, Solana Company reported a six-month net loss of $130.1 million, translating to $1.66 per share. Management clarified during the earnings call that fair-value movements recorded under U.S. accounting rules did not impact their cash balance or the volume of SOL tokens generated through staking.

After adopting its SOL-centered strategy in September 2025, previously known as Helius Medical Technologies, the company launched its treasury strategy through a $500 million private placement led by Pantera Capital and Summer Capital, as reported by crypto.news.

Participants purchased shares at $6.88 each, receiving warrants that could be exercised at $10.13, with potential proceeds from warrant exercises reaching up to $750 million, dependent on investor decisions.

As of October 2025, the rebranded company possessed over 2.2 million SOL, valued at more than $525 million, in addition to over $15 million in cash.

However, its June 2026 balance sheet reflected a significantly reduced asset base, with total assets dropping to $176.1 million from $303.9 million at the end of 2025, and stockholders’ equity declining to $165.6 million from $300.9 million.

Cash and cash equivalents fell to $3.6 million from $7.3 million. Current digital assets stood at $21 million, with an additional $2.3 million classified as a digital-asset collateral receivable.

Long-term digital assets and related exposure were recorded at $147.3 million, encompassing staked positions, restricted assets, receivables, and investments in digital asset funds.

Investors in Nasdaq remain susceptible to SOL price fluctuations

As HSDT trades on the Nasdaq Capital Market, U.S. investors gain indirect SOL exposure through its shares without needing to hold the token directly. The company’s filings also indicate that its financial condition is closely tied to SOL prices, staking returns, and its ability to generate funds through stock offerings.

In Q2, Solana Company raised $7.9 million in net proceeds from a registered direct stock offering led by Mirae Asset, with participation from HashKey Capital. The company sold roughly 3.08 million shares at $2.60 each and indicated that the funds could be used for SOL purchases, working capital, and corporate expens…

Simultaneously, they spent about $2.3 million on repurchasing 1.3 million shares. For the first half, buybacks totaled approximately $5.9 million, covering 2.9 million shares held as treasury stock at the end of June.

On June 30, the company had 60.4 million issued shares, with 57.4 million outstanding after excluding treasury stock. Its accumulated deficit grew to $342.6 million from $212.6 million at the end of 2025.

On August 14, HSDT closed at $1.70, reflecting a 5.56% decline during regular trading according to market data cited by Investing.com. The shares recovered slightly to $1.71 post-market, while the reported revenue was about $400,000 lower than the $2.9 million analyst estimate referenced by the publication.

Revenue from validators may commence in Q3

In addition to staking its treasury, Solana Company is enhancing its infrastructure to generate revenue from third-party assets. Its first institutional validator cluster has become operational in Tokyo under the Pacific Backbone initiative.

CEO Joseph Chee stated that the company’s recurring business lines are starting to materialize as the Tokyo operation goes live and the PoNS business divestiture reduces costs.

“With our first validator cluster operational in Tokyo, and the legacy business fully divested, the recurring revenue streams that leverage our institutional-grade infrastructure are beginning to take root,” Chee remarked.

Management anticipates that the Tokyo cluster will begin generating validator-related revenue in the third quarter. In July, this operation secured its first third-party staking commitment of around 500,000 SOL, as discussed during the earnings call.

Previously, Solana Company incorporated Helius and Twinstake into its staking setup, allowing it to stake SOL directly from custody at Anchorage Digital Bank. At the time of the October 2025 announcement, Helius and Twinstake ranked among the top 25 validators in the Solana network by delegated SOL.

Through Pacific Backbone, the company also formed a partnership with the Jito Foundation in May to enhance institutional Solana infrastructure in the Asia-Pacific region. Management also expects administrative expenses to revert closer to Q1 levels as the severance costs associated with the PoNS sale diminish.

Subsequent to the quarter’s conclusion, Solana Company completed a $2 million acquisition of a trust company based in Hong Kong on July 15, which will be included in its financial statements for Q3.