STKE

This article first appeared on GuruFocus. Fiscal Period: Nine months ended June 30, 2026. Reporting Currency: All dollar amounts in Canadian dollars unless otherwise noted. Business Lines: Three business lines discussed, with financial metrics to be detailed in the call. Release Date: August 17, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sol Strategies Inc (NASDAQ:STKE) reported strong initial performance from HoudiniSwap, contributing CAD1.2 million in revenue and CAD685,000 in operating income with a 60% margin in its first month, indicating a promising growth trajectory. The company's validator business achieved 100% uptime in Q3 2026, with the Orangefin validator delivering a 5.84% average APY, outperforming the network average of 5.53%. Sol Strategies Inc (NASDAQ:STKE) secured a major institutional validation by becoming the SOL staking provider for the VanEck Solana ETF, enhancing its credibility and market position. The acquisition of HoudiniSwap was financed through DeFi protocols without selling treasury SOL, demonstrating capital-efficient treasury management and avoiding crystallization of losses in a depressed market. The company's STKESOL liquid staking token launched successfully with over 500,000 SOL deposited, spreading across 75 validators and offering liquidity and DeFi integration, positioning it as a unique product in the market. Sol Strategies Inc (NASDAQ:STKE) reported an EBITDA loss of over CAD1.1 million for the quarter, indicating ongoing operational challenges despite revenue growth. The company's financials are heavily impacted by non-cash items, with over 80% of operating expenses being non-cash, including significant impairments and revaluations, which may obscure underlying performance. The macro environment for digital assets has been challenging, with the first nine months of the fiscal year described as difficult for the industry, potentially affecting investor sentiment and market conditions. The HoudiniSwap acquisition involved a complex deal structure with a two-year earnout of up to USD10 million tied to performance, adding uncertainty and potential future dilution or cash outflows. Sol Strategies Inc (NASDAQ:STKE) acknowledged that the market is not yet rewarding its efforts, suggesting that the company's stock price may not reflect its intrinsic value, which could be a concern for investors seeking near-term returns. Warning! GuruFocus has detected 4 Warning Signs with STKE. Is STKE fairly valued? Test your thesis with our free DCF calculator. Q: How does management view the new governance proposals, SIMD-0550 (accelerated disinflation) and SIMD-0553 (resource-based fee burning), and what impact would they have on the business model? A: Michael Hubbard (Interim CEO): We are supportive of both proposals and will be voting accordingly. The first proposes to increase the disinflation rate, which affects the long-term economics of staking rewards. The second proposes aligning transaction fees with the compute power required to execute them. We recently announced our reasoning on our social channels. Q: Houdini's first month generated CAD1.2 million in revenue at a 66% EBITDA margin across 39 integrations. How large is the opportunity to keep expanding integrations, and how durable do you expect that margin profile to be as volume scales? A: Michael Hubbard (Interim CEO): We have a very scalable infrastructure, people, and technology to significantly increase revenue with limited expenses. The exception is marketing dollars to accelerate growth. The B2B opportunity is massive, and we see low marginal costs to grow the existing business, with easily executed value adds like HoudiniPay that appeal to specific clientele. Q: Why did Sol Strategies step outside pure Solana validator infrastructure to acquire HoudiniSwap, a cross-chain privacy swap aggregator? A: Michael Hubbard (Interim CEO): Privacy is the next layer institutions actually need. HoudiniSwap is a non-custodial, privacy-focused cross-chain swap aggregator routing trades across more than 120 blockchains. It provides a revenue line largely independent of SOL's price and critical infrastructure for crypto-to-crypto mobility, which is an overlooked growth area. Over 50% of its volume touched Solana in the last 12 months. Q: How was the HoudiniSwap acquisition deal structured? A: Douglas Harris (CFO): Total consideration was approximately USD18 million, including CAD8.25 million in cash (CAD7 million at closing, CAD1.25 million held back as an indemnity holdback), USD5.75 million in seller's notes due December 1, 2026, and USD4 million in common shares. There is also a two-year earnout of up to USD10 million tied to Houdini hitting a CAD2.5 million adjusted EBITDA hurdle annually, meaning a meaningful piece of the value is contingent on performance. Q: How did the company finance the cash portion of the Houdini acquisition without touching its SOL treasury? A: Michael Hubbard (Interim CEO): We financed the cash consideration through decentralized finance protocols on Solana using our own balance sheet rather than selling treasury SOL into a depressed market. This is capital-efficient treasury managementthe treasury acts as productive collateral for strategic purposes like M&A without crystallizing losses, allowing us to borrow stablecoins at competitive rates while still earning yield on the collateral. Q: What stood out operationally during the nine-month period for the validator business? A: Michael Hubbard (Interim CEO): All validators ran at 100% uptime in Q3 2026. Our Orangefin validator delivered a 5.84% average APY in June, ahead of the network average of 5.53%. The Solana Mobile Seeker Validator attracted more than 27,000 unique wallets by quarter end. We also formally announced becoming the SOL staking provider to the VanEck Solana ETF, which is strong institutional validation. Q: Can you explain how the STKESOL liquid staking token works and what makes it unique? A: Michael Hubbard (Interim CEO): STKESOL launched in January 2026 with over 500,000 SOL deposited at launch. Users deposit SOL and receive DEXSOL, which grows in value over time as staking rewards accrue. Instead of concentrating on our own validators, it spreads deposits across roughly 75 validators using our StakeWiz WizScore methodology. It's usable across DeFi platforms like Orca, Squads, Kamino, and Loopscale, and we act as an orchestrator directing staking decisions. Q: What were the key financial highlights for the quarter ended June 30, 2026, and how should investors interpret the P&L? A: Douglas Harris (CFO): Over 80% of operating expenses are non-cash items, including approximately CAD6 million in intangible asset amortization impairment and over CAD6.5 million in revaluation of the digital asset treasury. When backing out non-cash expenses, the EBITDA loss was just over CAD1.1 million. This includes only one month of Houdini results, and the September quarter looks promising. Q: What is the M&A pipeline looking like going forward, and what is the acquisition filter? A: Michael Hubbard (Interim CEO): We keep evaluating opportunities both inside the Solana ecosystem and in adjacent ecosystems. The filter remains the same: Does it scale distribution? Does it bring a technical capability we don't have? And is the team worth acquiring, not just the assets? Steve Ehrlich (CSO) added that in the bear market, opportunities are increasing, and we must stay disciplined to ensure new businesses fit structurally and culturally. Q: What gets you most excited about the future of the business? A: Douglas Harris (CFO): I'm excited about working with our team, which is strong technically, financially, and operationally, and we'll have creative ways to grow the business. Michael Hubbard (Interim CEO): The foundation is solid with a significant foothold in the Solana ecosystem and touch points across over 100 other blockchains. We have an incredibly talented team, and there's so much excitement for what this technology can achieveit feels like a bubble of potential ready to burst. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Download the Complete Report Here Key Takeaways: Houdini materially changes the earnings mix and marks the clearest step yet in STKE’s evolution toward a broader blockchain infrastructure platform. STKE reported C$1.79 million of operating revenue in 3Q FY26 (quarter ending June 30, 2026), down 41% from C$3.04 million in the prior-year quarter, but the composition of revenue changed materially following the June 1 closing of Houdini. Swap aggregator fees contributed C$1.17 million from only one month of ownership, representing approximately 65% of quarterly operating revenue, while combined staking and validation income fell to C$622,000 from C$3.04 million y/y. Houdini also contributed C$768,000 of EBITDA, implying a 66% EBITDA margin, while the call separately referenced approximately C$685,000 of operating income and a margin of roughly 60%. We believe the quarter provides tangible evidence that STKE can add SOL-price-independent transaction revenue alongside validator infrastructure and a productive SOL treasury, broadening the earnings model within its core blockchain infrastructure strategy. STKE is increasingly organized around three interconnected value engines, validator infrastructure, privacy and cross-chain technology, and a productive SOL treasury, with each reinforcing the broader blockchain infrastructure platform. The validator business monetizes third-party SOL through staking commissions, MEV, and transaction fees without requiring STKE to own the delegated assets, creating a balance-sheet-light recurring revenue engine. The owned treasury adds a second layer by generating staking yield while also providing productive collateral that can support strategic financing and infrastructure expansion. Houdini and Zyga extend the model into privacy, cross-chain execution, transaction routing, and transaction and software-driven revenue across 120+ blockchain networks, with more than 50% of Houdini’s trailing transaction volume touching Solana. Together, the model increasingly combines infrastructure, treasury, and privacy technology that can compound through different but complementary economic channels, broadening STKE beyond a single-chain or token-price-dependent earnings model. Lower protocol issuance is accelerating the shift toward AuD, MEV and transaction-driven validator monetization. Staking income fell 59% y/y to C$530,000 from C$1.29 million, while validation service income declined 95% to approximately C$92,000 from C$1.75 million, taking combined income to C$622,000 versus C$3.04 million in 3Q FY25 and approximately C$1.15 million in 2Q FY26. Importantly, gross validator rewards fell to 2,531 SOL from 8,789 SOL y/y, while staking rewards declined to 4,295 SOL from 6,271 SOL. After 375 SOL of validator fees, net validator income was 2,156 SOL, taking total staking and validating income to 6,451 SOL versus 15,060 SOL a year ago, down 57%. This marks a change from 2Q, when weaker CAD revenue primarily reflected SOL-price pressure despite more resilient token-denominated generation. With Solana disinflation reducing issuance and network competition pressuring validator commissions, recovery increasingly depends on AuD, transaction activity, MEV capture, and monetization per delegated SOL rather than token price alone. We believe Houdini’s first month provides encouraging initial validation of the strategic rationale behind the acquisition and immediately adds a high-margin second operating engine. Houdini generated C$1.2 million of revenue and C$685,531 of operating income during June, implying a reported operating margin of ~59%. Management characterized the result as roughly 60% operating margin and 66% EBITDA margin, while noting that the first month was in line with expectations and that the June run-rate would imply a less-than-three-year payback on the acquisition before any future growth. Importantly, management also indicated that the September quarter was looking promising and that integration had been seamless to date, making 4Q FY26 the first period in which we will see three full months of Houdini inside consolidated results. Strong validator performance and embedded distribution provide a foundation to rebuild AuD and expand monetization per SOL. Assets under Delegation ended June at 3.4 million SOL, or ~C$355 million, down ~11% from 3.8 million SOL at March quarter-end and 8% from 3.74 million SOL a year ago, while STKE continued to serve 33,000+ unique wallets and maintained 100% validator uptime. Orangefin generated a 5.84% average APY in June versus the Solana network average of 5.53%, a 31 bps advantage, while the Seeker validator alone had attracted 27,000+ wallets. Together with STKE’s role as sole staking provider to the VanEck Solana ETF, these embedded and institutional channels provide balance-sheet-light routes to stabilize and rebuild delegation after AuD declined from more than 4.0 million SOL earlier in FY26. The owned treasury remains a productive third value engine, generating recurring staking yield while providing strategic balance-sheet flexibility. As of June 30, 2026, STKE held 459,792 SOL, more than 4.5x the 100,746 SOL held around its FY24 pivot, alongside additional STKESOL and JTO positions. Approximately 205,620 SOL was staked directly to company-operated validators at quarter-end, with management indicating the owned treasury earns approximately 6% annual staking rewards. This creates a recurring yield stream independent of third-party delegation growth while retaining upside to SOL appreciation and providing productive collateral that can be deployed for strategic financing. The distinction is increasingly important as STKE broadens into Houdini: the treasury can continue compounding in SOL units while transaction infrastructure provides a separate cash-earnings engine, with the two supporting different but complementary sources of value creation. A key shift within the validator stack is from issuance-driven rewards toward transaction and liquid-staking economics. STKE’s infrastructure processes more than 1 million transactions per day, creating monetization opportunities through commissions, MEV and transaction fees as protocol emissions decline; during 3Q, the company began deploying Jito’s block assembly marketplace on two nodes to improve participation in transaction-driven economics. SIMD-0550 proposes faster Solana disinflation, while SIMD-0553 would introduce resource-based transaction fees tied more directly to network compute usage, potentially accelerating this shift. STKE indicated support for both proposals and said it intends to vote accordingly, viewing the changes as constructive for Solana’s longer-term economics despite the near-term pressure faster disinflation could place on staking rewards. STKESOL adds a separate fee-bearing layer, ending June with ~646,000 SOL across 1,300+ wallets versus ~768,000 SOL at March quarter-end, down ~16% q/q but still above the 500,000+ SOL deposited at launch. The product distributes stake across roughly 75 validators and allows STKE to earn a share of pooled staking rewards without owning the underlying SOL. As protocol issuance declines, growth in validator monetization should increasingly depend on AuD, MEV, transaction fees and STKESOL activity rather than token rewards alone. Zyga adds a proprietary technology layer that STKE can now potentially commercialize through Houdini’s existing distribution. STKE acquired substantially all of Darklake’s assets and core development team in April, including Zyga, a proprietary zero-knowledge proving system developed from technology that placed second in the DeFi track of the Colosseum Global Radar Hackathon among 1,300+ submissions. Zyga is designed to enable private, MEV-resistant execution and confidential on-chain workflows, with the team now evaluating applications across Houdini’s retail and B2B ecosystem. Houdini gives the technology an existing distribution base across wallets, exchanges and transaction flow rather than requiring standalone customer acquisition; successful integration could improve product differentiation, monetization per transaction and margins. Treasury-backed financing preserved SOL exposure while providing acquisition capital without liquidating core holdings. STKE financed Houdini’s cash consideration through Solana-based DeFi rather than selling SOL, with 252,851 SOL worth approximately C$26.4 million pledged to Kamino at June 30 against C$13.9 million of borrowings. The facility carried an approximately 3% variable rate and a 75% liquidation threshold, while pledged assets continued generating staking yield. At quarter-end, STKE had C$1.9 million of cash and C$37.3 million of current liabilities, but also C$48.3 million of digital assets, including roughly C$22 million of unencumbered assets available for liquidity. This approach preserved SOL exposure and avoided crystallizing a sale during weak market conditions, but increased the sensitivity of liquidity and collateral coverage to token prices ahead of the $5.75 million Houdini seller-note payment due December 1. Noncash charges mask a significantly narrower underlying EBITDA deficit, with Houdini beginning to demonstrate operating leverage. Effective June 1, STKE ceased qualifying as an investment entity under IFRS 10 and began consolidating controlled subsidiaries, including Houdini, making 3Q both an economic and reporting transition. STKE reported a C$17.6 million net loss, or C$0.49 per share, versus C$8.2 million, or C$0.40, y/y, including C$5.43 million of digital-asset revaluation losses, C$4.00 million of impairment, C$1.81 million of amortization, and C$1.30 million of share-based compensation. Management characterized more than C$15 million of quarterly expenses as noncash and cited an underlying EBITDA loss of just over C$1.1 million versus positive adjusted EBITDA of approximately C$1.3 million in 3Q FY25. Professional fees, management remuneration, and G&A increased approximately 70% y/y to C$2.58 million, while Houdini generated C$768,000 of EBITDA in June alone, making 4Q an important test of whether a full-quarter contribution can absorb the larger cost base and move underlying profitability toward breakeven. The expanded equity base has funded platform growth, but the 72% increase in shares outstanding raises the hurdle for per-share value creation. Shares outstanding increased approximately 72% from 23.0 million at September 30, 2025 to 39.5 million by mid-August through the LIFE financing, ATM issuance, convertible conversions, acquisition consideration, and other equity issuance. Through 9M FY26, operating activities used C$7.8 million of cash versus C$8.1 million y/y, while financing activities supplied C$31.8 million and investing activities consumed C$24.0 million, including treasury deployment and acquisitions. The capital raised has expanded STKE’s capacity to build the platform, but incremental value creation now depends on converting that investment into stronger revenue, EBITDA and per-share economics across Houdini, validator monetization and Zyga commercialization. 4Q should provide the first clear read on STKE’s transition toward a broader, more diversified infrastructure earnings model. Houdini contributed C$1.17 million of swap revenue and C$768,000 of EBITDA in only one month versus C$622,000 of staking and validation income for the entire 3Q, while the platform has expanded beyond 40 integrations and $2.8 billion of cumulative transaction volume. The setup into FY27 is increasingly driven by the contribution from these newer operating engines, with Street revenue estimates sourced from TIKR pointing to C$24.5 million of FY27 revenue. We would consequently focus near-term on a full quarter of Houdini revenue and margin durability, AuD stabilization from 3.4 million SOL, STKESOL flows from 646,000 SOL, Zyga commercialization, and liquidity execution. Delivery across those metrics would provide the clearest evidence that STKE’s infrastructure, treasury, and privacy technology are beginning to compound into a broader and more durable revenue model. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. We believe STKE should increasingly be valued as a blockchain infrastructure company rather than primarily through a treasury-based valuation framework. The business now combines validator infrastructure, cross-chain transaction and privacy technology through Houdini and Zyga, liquid staking through STKESOL, and a productive SOL treasury, creating multiple operating and asset-backed sources of value. Importantly, these engines are increasingly complementary: validators generate recurring fees on third-party assets, Houdini adds high-margin transaction revenue largely independent of SOL prices, Zyga adds proprietary privacy technology, and the treasury generates staking yield while providing financing flexibility. As this revenue mix broadens, we believe operating metrics such as revenue growth and margins should carry increasing weight alongside NAV. STKE trades at a substantial discount to blockchain infrastructure peers, providing a clear framework for operating-led rerating. At $1.18 per share, STKE has a market capitalization of $46.6 million and trades at approximately 2.6x FY27E revenue estimate of C$24.5 million ($17.7 million). This compares with an average of 6.6x for selected infrastructure peers Coinbase, Circle Internet Group and Securitize, which trade between 5.4x and 8.2x FY27E revenue. STKE is substantially smaller and earlier in its operating transition, supporting some discount, but the current gap remains significant. Applying the 6.6x peer average to FY27E revenue implies an illustrative equity value of approximately $117 million, or roughly $2.96 per share, broadly consistent with the Street’s $2.80 target. We view this as an illustrative rerating framework rather than a price target, with convergence dependent on sustained Houdini growth, improving revenue visibility and demonstrated operating leverage. The SOL treasury provides substantial asset backing underneath the infrastructure valuation and creates a second source of rerating potential. STKE’s direct SOL holdings are currently worth $38.9 million, equal to roughly 84% of the company’s $46.6 million market capitalization, leaving only a modest portion of current equity value above the treasury despite the operating businesses now inside the platform. STKE trades at approximately 1.20x mNAV versus 0.81x for the broader crypto treasury peer group, indicating that investors already assign some premium for its operating capabilities. We nevertheless view mNAV as a secondary valuation lens going forward. STKE has traded at higher treasury premiums during stronger crypto markets, and a recovery in SOL and broader digital asset sentiment could lift both NAV and the multiple applied to that NAV while operating infrastructure provides an independent path to value creation. Houdini provides a second tangible valuation anchor, while its operating footprint has expanded since closing. STKE acquired Houdini for approximately $18 million after the business generated roughly $13 million of revenue in 2025, providing an observable transaction reference for an asset that now represents a meaningful portion of consolidated revenue. Houdini contributed C$1.17 million of revenue and C$768,000 of EBITDA in June, its first consolidated month, while cumulative transaction volume has increased from approximately $2.5 billion around the acquisition to $2.8 billion and wallet and exchange integrations have expanded from 32 to more than 40. The $18 million acquisition value and $38.9 million SOL treasury together represent roughly $56.9 million of gross reference value, already above STKE’s current $46.6 million market capitalization before assigning standalone value to the validator platform, STKESOL or Zyga. This is not a direct equity-value calculation given STKE’s financing obligations, but it reinforces how little value the current capitalization appears to assign to the broader operating platform. Validator infrastructure, STKESOL and Zyga provide additional optionality beyond the two most visible valuation anchors. STKE supports 3.4 million SOL of AuD, maintains 100% validator uptime and has embedded institutional distribution through relationships including the VanEck Solana ETF, while STKESOL holds approximately 646,000 SOL across 1,300+ wallets and provides an additional fee-bearing layer. Zyga adds proprietary privacy and execution technology that can be commercialized through Houdini’s expanding distribution. We would not assign precise standalone values to these businesses at their current stage, but each creates additional opportunities for recurring fee, transaction and software revenue that are not fully captured by treasury NAV or Houdini’s acquisition value alone. The rerating opportunity is therefore supported by both operating growth and underlying asset value, creating an attractive asymmetry if execution improves. The clearest catalysts are sustained Houdini revenue and margins through its first full quarter, continued B2B and integration growth, stabilization of AuD from 3.4 million SOL, renewed STKESOL growth, commercialization of Zyga, and progress toward the C$24.5 million FY27 Street revenue expectation. A stronger SOL and crypto market could provide an additional catalyst through higher treasury NAV and renewed mNAV expansion. The principal offsets remain leverage, pledged SOL, dilution and the $5.75 million Houdini seller-note payment due December 1, making cash generation and per-share value creation important to realizing the rerating. Overall, we believe STKE’s current revenue multiple understates the combined value of a growing blockchain infrastructure platform supported by a substantial productive SOL treasury. Read Exec Edge’s Initiation on STKE Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post SOL Strategies Evolving Into Broader Blockchain Platform – Quarterly Update Report appeared first on ExecEdge.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management defines the company as a three-pillar blockchain infrastructure entity comprising a Validator business, a Privacy business (HoudiniSwap), and an Owned Corporate Treasury. The Validator business functions as a 'tollbooth' model, generating revenue through commissions on staking rewards, MEV sharing, and transaction fees without requiring underlying asset ownership. The acquisition of HoudiniSwap provides a strategic privacy and cross-chain execution layer, offering a revenue stream largely independent of Solana's price volatility and technology base. Operational excellence was highlighted by 100% uptime for all validators in Q3 2026, with the OrangeFin validator outperforming the network average with a 5.84% APY. The company utilizes a capital-efficient treasury management strategy, using its Sol holdings as productive collateral for M&A financing via DeFi protocols rather than selling assets in depressed markets. Strategic institutional validation was achieved by becoming the sole staking provider for the VanEck Solana ETF during the nine-month period. The launch of STKESOL represents a shift toward becoming a middle-layer orchestrator, distributing deposits across 75 validators to maintain liquidity and mitigate concentration risk. Management expects to aggressively grow the HoudiniSwap business by expanding integrations beyond the current 40+ wallets and targeting B2B customers needing compliant, confidential execution. The company is actively pursuing high-potential applications for the Zyga zero-knowledge proving system to improve product offerings and margins within the Houdini ecosystem. Future M&A remains a core focus, with management evaluating opportunities based on their ability to scale distribution, provide new technical capabilities, and add high-quality talent. Management expressed support for Solana governance proposals SIMD-550 and SIMD-0553, anticipating they will positively impact the long-term economics of the network. The strategic focus remains on building a foundation and runway to capitalize on the digital asset economy when the macro environment improves. Operating expenses for the three months ending June 30, 2026, included over 80% non-cash items, specifically CAD 6 million in intangible asset impairment and CAD 6.5 million in treasury revaluation; when these are excluded, the company reported an EBITDA loss of just over CAD 1.1 million. The HoudiniSwap acquisition was structured with a USD 18 million total consideration, including cash, seller notes, common shares, and a USD 10 million earn-out tied to EBITDA hurdles. A 20% increase in the price of Sol from USD 73 would result in an approximately CAD 10 million increase in the company's digital treasury value. The company recorded CAD 21.4 million in goodwill related to the HoudiniSwap acquisition, primarily attributed to the assembled workforce and expected synergies. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management believes the infrastructure is highly scalable, allowing for significant revenue increases with limited expense growth, aside from targeted marketing spend. The B2B opportunity is viewed as massive, with low marginal costs to grow the existing business through value-adds like Houdini Pay. Management confirmed they are supportive of both the accelerated disinflation and resource-based fee burning proposals and will vote accordingly. These proposals are expected to refine the long-term economics of the Solana network by aligning fees with compute power. Management argues the market does not yet fully recognize their shift toward high-margin infrastructure, suggesting comparables should include firms like Coinbase and Circle. The company has already begun hiring to expand the sales team and build new funnels for the Houdini business line.

Toronto, Ontario--(Newsfile Corp. - June 26, 2026) - SOL Strategies Inc. (CSE: HODL) (NASDAQ: STKE) ("SOL Strategies" or the "Company"), a digital asset infrastructure company focused on high performance blockchain and privacy technologies, today announced that it has filed on SEDAR+ its amended and restated interim unaudited condensed financial statements and related management's discussion and analysis for the three and six months ended March 31, 2026 (collectively, the "Amended Filings"). The Amended Filings fully replace the interim financial statements and MD&A for the same period originally filed on May 15, 2026, and were prepared to correct certain presentation and classification matters identified through review by the Company's auditor, Davidson & Company LLP. The following corrections were incorporated into the amended and restated interim financial statements: the revaluation loss on digital assets for the three months ended March 31, 2026; the earnings per share for the three months ended March 31, 2026; the statement of cash flows for the six months ended March 31, 2025; the statement of changes in shareholders' equity for the period ended March 31, 2025; the change in fair value of cryptocurrencies disclosed in Note 5; the stock option grant activity disclosed in Note 13; and the subsequent events disclosed in Note 23. The corrections did not change the Company's total comprehensive loss, total assets, total liabilities, or shareholders' equity (deficiency) for the period. Amended and restated certifications of the interim filings (Form 52-109F2R) have been filed concurrently. The Amended Filings will be available under the Company's profile on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov, and should be read in their entirety. About SOL Strategies Inc. SOL Strategies Inc. (CSE: HODL) (NASDAQ: STKE) is a digital asset infrastructure company focused on high-performance blockchain and privacy technologies. Headquartered in Toronto, the Company operates staking infrastructure and privacy technology on public blockchain networks, serving a broad range of participants from individual SOL holders to institutional clients. To learn more about SOL Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's profile on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. Investor Contact:Doug Harris, Chief Financial Officer, 416-480-2488John Ragozzino, CFA, [email protected], 203-682-8284 Media Contact: [email protected] Cautionary Note Regarding Forward-Looking Information: Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward-looking statements and information. More particularly and without limitation, this news release contains forward-looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements. Disclaimer: SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies. None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303169

Download the Complete Report Here Key Takeaways: STKE’s DAT++ model is expanding from validator economics into a broader Solana infrastructure stack. STKE’s 2Q FY26 (quarter ending March 2026) was defined less by CAD-denominated revenue and more by its transition from a validator-led DAT++ vehicle into a broader Solana infrastructure platform spanning staking, liquid staking, privacy-enabled execution, and cross-chain routing. Core rewards remained resilient, with 5,650 SOL of staking rewards and 3,521 SOL of validation rewards, bringing total rewards to 9,171 SOL, down only 6% q/q, even as CAD-denominated staking and validation income fell 45% q/q to C$1.15 million on lower SOL prices. We believe the divergence reinforces the thesis: STKE is building value through SOL units, fee-bearing assets, and transaction-layer revenue, not simply balance-sheet exposure to SOL. Strategic execution in 1H FY26 supports the move from passive SOL exposure toward infrastructure monetization. The first half included capital-structure clean-up, Michael Hubbard’s permanent CEO appointment on March 31, the January launch of STKESOL, the April Darklake/Zyga acquisition, and the definitive agreement to acquire Houdini Swap for $18 million. Collectively, these actions extend the model beyond proprietary staking and delegated validation into liquid staking, private execution, APIs, routing, and transaction distribution, with Darklake and Houdini representing the clearest steps toward a higher-margin Solana middleware platform. The core thesis remains unit compounding, but mark-to-market pressure was significant. STKE ended March with 441,915 SOL, 82,314 STKESOL, and 52,182 JTO, worth C$60.7 million versus C$126.5 million of crypto holdings at September 30, as SOL fell 60% from $208.74 to $83.11. The offset was unit growth: SOL-equivalent holdings increased to roughly 524,000 from 435,159 at fiscal year-end, AuD reached 3.8 million SOL, and the validator network served 34,000+ wallets with 100% uptime and a 6.08% peak APY versus the 5.74% network average. The quarter therefore reinforced the DAT++ thesis at the unit and product levels, even as SOL-price compression drove a C$89.9 million quarterly loss and C$48.2 million total comprehensive loss. Darklake expands STKE into Solana-native privacy infrastructure and zero-knowledge execution. In April, STKE acquired Darklake Labs for $1.2 million, including $200K in cash and $1.0 million in common shares subject to a four-month lock-up. The transaction brings Zyga, a Solana-native dynamic zero-knowledge proof engine designed to enable private transaction execution while mitigating front-running and sandwich attacks, alongside an application layer focused on dynamic slippage protection and improved trade execution quality. Darklake adds a team with prior experience at Meta, IBM, Coinbase, and Coincover, plus ecosystem validation from a second-place finish in the Solana Radar Global Hackathon DeFi track, Colosseum Accelerator participation, two Brazilian university partnerships, and an ongoing patent process. Strategically, the acquisition moves STKE beyond validator ownership into proprietary Solana technology development, with privacy and execution quality becoming potential product layers on top of the core staking and validation platform. Pending Houdini acquisition adds cross-chain transaction infrastructure and software-based revenue. In May, STKE entered into a definitive agreement to acquire Houdini Swap for $18 million, consisting of $8.25 million in cash, a $5.75 million promissory note, $4 million in common shares, and additional warrant consideration, with closing expected by the end of May subject to customary approvals. Houdini is a non-custodial, privacy-enabled cross-chain swap aggregator operating across more than 100 blockchain networks and over 30 centralized and decentralized exchanges, enabling users to access competitive swap routes without taking custody of funds. The platform generated ~$13 million in revenue during 2025, has processed more than $2.5 billion in cumulative transaction volume, and had more than half of trailing 12-month volume touch Solana, making it directly relevant to STKE’s Solana-first infrastructure strategy. Zyga and Houdini together create the clearest near-term product integration opportunity. Darklake’s Zyga technology brings zero-knowledge privacy and slippage-protection capabilities, while Houdini brings existing distribution, routing infrastructure, public and private swap functionality, and API-based integrations across 100+ blockchain networks and 1 million+ supported tokens. Combining the two could improve private swap execution, support value-added services for users, and expand B2B API offerings for partners, with Houdini Pay creating an additional path into private wallet-to-wallet transfers. The opportunity is to turn these assets into integrated products that expand transaction volume, fee capture, and margin contribution, while using Houdini to drive users into STKE’s staking ecosystem and preserving execution quality across the core validator platform, 3.8 million SOL of AuD, and the January-launched STKESOL fee layer. STKESOL is validating the DAT++ model by converting staked SOL into a liquid, fee-bearing asset. Launched in January, STKESOL gives SOL holders a receipt token representing their staked position while continuing to accrue staking rewards, allowing users to hold, trade, collateralize, or deploy the asset in DeFi instead of waiting up to two days to unstake native SOL. Early adoption was strong, with deposits reaching approximately 768,000 SOL by March 31, equivalent to roughly $61 million or C$83 million at the time, and STKE earns a 5% commission on the staking rewards generated by the pool without taking a fee on staked principal. The traction matters because STKESOL adds an asset-linked fee stream alongside treasury staking and delegated validator commissions, while positioning STKE at the aggregation layer between stakers, validators, and DeFi applications. Leadership additions deepen blockchain, public-company, and capital-markets capabilities as STKE expands its platform ambitions. During the quarter, STKE added industry veteran Les Borsai and public company executive Dennis Logan as Directors, appointed Jon Matonis as Chairman, formalized Michael Hubbard as permanent CEO effective March 31, and appointed Steve Ehrlich as Chief Strategy Officer. The changes add blockchain expertise, public-company experience, and capital-markets depth at a point when the company is moving beyond validator infrastructure into STKESOL, Darklake/Zyga, and the pending Houdini transaction. Reported losses were dominated by accounting and noncash items rather than cash operating deterioration alone. STKE reported a C$89.9 million net loss in 2Q FY26 versus a C$4.8 million net loss in the March 2025 quarter, while the six-month net loss was C$101.7 million compared with C$1.6 million a year ago. The six-month loss included C$21.7 million of realized cryptocurrency disposition losses, C$56.5 million of digital-asset revaluation losses, C$12.1 million of intangible-asset impairment losses, C$4.7 million of amortization, C$2.2 million of share-based compensation, and C$1.7 million of noncash interest and accretion. The scale of noncash and mark-to-market charges drove the reported loss profile, masking continued SOL-denominated reward generation of 18,957 SOL and C$3.25 million of six-month staking and validation income. Balance-sheet simplification improved flexibility, while financing capacity remains tied to token collateral and market access. STKE had C$60.6 million of cryptocurrencies, C$22.0 million of intangible assets, and C$0.35 million of cash at March 31, while total assets declined to C$85.9 million from C$169.6 million at September 30. Shareholders’ equity fell to C$40.7 million from C$114.8 million over the same period, reflecting reported and unrealized digital-asset losses, partially offset by capital raising. The company also repaid roughly C$9 million of debt to the former chairman, ended the quarter with 81,236 SOL and 82,137 STKESOL pledged to Kamino, and has a base shelf allowing up to $150 million of future offerings. The financing stack is cleaner and more flexible, but liquidity remains dependent on SOL collateral values, market windows, and capital raises that preserve SOL-per-share economics. Valuation should frame STKE’s transition from NAV-linked treasury exposure to infrastructure-led monetization. Exec Edge does not provide estimates, price targets, or buy/sell/hold ratings, and the analysis below is intended to frame valuation positioning and potential rerating drivers rather than imply a specific fair value. We believe STKE’s valuation should now be viewed through a DAT-plus-infrastructure lens. STKE trades at 1.43x mNAV versus the peer average of 0.99x, suggesting the stock is no longer being valued as a simple discount-to-NAV treasury vehicle. That premium is best understood as early credit for the company’s operating infrastructure, including validator rewards, 3.8 million SOL of AuD, STKESOL liquid-staking fees, and the pending expansion into transaction routing through Houdini. On a pure DAT framework, STKE’s SOL-equivalent holdings remain the valuation anchor; on an infrastructure framework, the debate shifts to whether those assets can support recurring, scalable fee revenue beyond token appreciation. Middleware expansion strengthens the case for an operating premium over passive DAT peers. STKE combines SOL treasury exposure with delegated validator economics, 768,000 SOL of STKESOL deposits, and a developing software and transaction layer through Darklake/Zyga and Houdini. Houdini is particularly important because it generated approximately $13 million of 2025 revenue and processed more than $2.5 billion of cumulative transaction volume, creating a potential software-revenue stream that passive DAT peers do not have. While STKE is not the largest SOL treasury in the peer set, the valuation argument is increasingly about recurring infrastructure monetization rather than balance-sheet SOL density alone. Rerating drivers are now tied to execution across the infrastructure stack rather than SOL price alone. Continued SOL-equivalent unit growth, AuD expansion with stable validator margins, STKESOL deposit retention and fee contribution, Houdini closing and revenue contribution, and Zyga-enabled private execution products are the key catalysts. As fee-bearing assets and transaction revenue become more visible, STKE should be better positioned to sustain a valuation framework above NAV-only DAT treatment. The upside case is that STKESOL, delegated validation, and Houdini/Zyga convert the SOL treasury into a broader infrastructure platform with recurring revenue and higher-margin monetization. The key risks to that framework are limited STKESOL fee contribution, validator incentives weighing on net economics, or slower Houdini integration, any of which would keep valuation more closely tied to DAT peer multiples and SOL NAV. Download the Complete Report Here Read Exec Edge’s Initiation on STKE Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected]

This article first appeared on GuruFocus. Release Date: May 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sol Strategies Inc (NASDAQ:STKE) launched StakeSOL, a liquid staking token on the Solana blockchain, which allows users to earn staking rewards while maintaining liquidity. The company acquired Ziga Zero Knowledge technology through the Dark Lake transaction, enhancing their privacy-preserving execution capabilities. Sol Strategies Inc (NASDAQ:STKE) signed a definitive agreement to acquire HoudiniSwap, a cross-chain swap aggregator, expected to add significant revenue and profits. The company strengthened its leadership team with the appointment of industry veterans, including John Matonis as Chairman and Michael Hubbard as permanent CEO. Sol Strategies Inc (NASDAQ:STKE) reduced its liabilities by approximately $9 million, improving its capital efficiency. The company reported a $22 million loss on the disposition of cryptocurrencies due to the exchange of Solana for other tokens. Significant non-cash expenses totaling approximately $77 million were recorded, including a $56.5 million revaluation loss on digital assets. The price of Solana declined from approximately $208 to $83, impacting the company's financial performance. Sol Strategies Inc (NASDAQ:STKE) experienced a six-month operating loss of approximately $2.6 million, highlighting challenges in achieving profitability. The company's income statement included a $12.1 million write-down of validators, reflecting potential issues with asset valuation. Warning! GuruFocus has detected 4 Warning Signs with STKE. Is STKE fairly valued? Test your thesis with our free DCF calculator. Q: Could you dive deeper into the product opportunities for Dark Lake and Houdini, and which might offer the greatest monetization potential? A: Michael Hubbard, CEO: Dark Lake's Ziga privacy engine unlocks multiple use cases, while Houdini offers routing infrastructure across over 100 blockchain networks. The real opportunity lies in integrating these technologies, potentially enhancing private swap opportunities on Houdini APIs and providing value-added services to swap users, particularly on the Solana blockchain. Q: What synergies exist between your existing validator business and the new acquisitions? A: Michael Hubbard, CEO: Our validators process transactions across the Solana network, providing priority transaction inclusion. With Houdini, we can bring more users into the staking ecosystem, offering them access to our staking products and potentially combining products for better swapping opportunities. Q: Are you transitioning to an infrastructure middleware company with these acquisitions? A: Michael Hubbard, CEO: Yes, we're moving up the stack from validator infrastructure to user-facing products and cross-chain liquidity movement. This vertical expansion integrates all layers, offering services like token swaps and privacy products, crucial for both end users and institutions. Q: Will these acquisitions positively impact the P&L soon? A: Steve Ehrlich, Chief Strategy Officer: The Houdini acquisition, set to close by the end of the month, is expected to add significant revenue and profits. The transaction involves $18 million with $4 million in stock, and we anticipate annual revenue of $12-13 million, with a $2.5 million EBITDA floor. Q: How do you plan to expand the Houdini Pay business? A: Steve Ehrlich, Chief Strategy Officer: We see a tremendous opportunity to expand Houdini Pay by combining it with Ziga technology for privacy in wallet transactions. This integration will enhance our offerings and expand our market reach. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Toronto, Ontario--(Newsfile Corp. - May 11, 2026) - SOL Strategies Inc. (CSE: HODL) (NASDAQ: STKE) ("SOL Strategies" or the "Company"), one of the first publicly traded companies dedicated to growing and building the Solana Economy, today announced it will release its financial results for the quarter ended March 31, 2026 on May 15, 2026. The Company will host a webcast and conference call on Monday, May 18, 2026 at 4:30pm EST. Event: SOL Strategies, Inc. Q2 2026 Financial Results Webcast and Conference Call Webcast Date: Monday, May 18, 2026, at 4:30 PM EST Live Call: (800) 274-8461 (U.S.) or (203) 518-9814 (International), Conference ID: SOLQ226 Webcast Link: SOL Strategies Q22026 Earnings CEO Michael Hubbard, CFO Doug Harris, and CSO Steve Ehrlich will host the live webcast and conference call to review the results and answer questions. Investors, analysts, and stakeholders are encouraged to attend the call to hear more about the Company's recent milestones and growth outlook. A replay will be available shortly after the event at https://solstrategies.io/investor-relations. While you're there, we encourage you to sign up for our investor distribution list to receive future updates directly. About SOL Strategies SOL Strategies Inc. (CSE: HODL) (NASDAQ: STKE) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications. To learn more about SOL Strategies, please visit www.solstrategies.io. A copy of this news release and all the Company's related material documents regarding the Company may be obtained under the Company's profile on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. Investor Contact: Doug Harris, Chief Financial Officer, 416-480-2488 John Ragozzino, CFA, [email protected], 203-682-8284 Media Contact: [email protected] Cautionary Note Regarding Forward-Looking Information: Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward‐looking statements and information. More particularly and without limitation, this news release contains forward‐looking statements and information relating to the Company's or the Company's management team's expectations, hopes, beliefs, intentions or strategies regarding the future, and expectations regarding the characteristics, value drivers, and anticipated benefits of the Company's business plans and operations related thereto. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". Forward-looking statements in this news release include statements regarding the timing for the Company's release of its financial results and the Company's financial outlook. There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements. Disclaimer: SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies. None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/296718

Shareholders Elect Proposed Directors; Michael Hubbard Appointed CEO; Stephen Ehrlich Joins as Chief Strategy Officer Toronto, Ontario--(Newsfile Corp. - March 31, 2026) - SOL Strategies Inc. (CSE: HODL) (NASDAQ: STKE) ("SOL Strategies" or the "Company"), one of the first publicly traded companies dedicated to growing and building the Solana Economy, is pleased to announce the voting results from its annual general meeting, which was held today. The seven nominees listed in the Management Information Circular of the Company dated March 2, 2026, being Luis Berruga, Laszlo Borsai, Jose Manuel Calderon, Rubsun Ho, Michael Hubbard, Dennis Logan and Jon Matonis, were elected as directors of the Company to hold office for the ensuing year. In addition, Davidson & Company LLP was appointed as auditor of the Company for the financial year ending September 30, 2026 and the directors of the Company were authorized to fix the remuneration to be paid to the auditor during such financial year. Following the meeting, the newly elected Board of Directors also confirmed two leadership appointments. Michael Hubbard has been appointed Chief Executive Officer, having served as Interim CEO since October 1, 2025. Steve Ehrlich has joined as Chief Strategy Officer, after having served as Head of Capital Markets for the past 14 months. Luis Berruga, Chairman of SOL Strategies, said: "We're pleased to welcome Les and Dennis to the Board, they bring perspectives that are going to serve the company well. And, with Michael confirmed as CEO, and Steve joining as Chief Strategy Officer, we've got the leadership in place to keep building. It's a good day for SOL Strategies." The Company thanks its shareholders for their continued support. Details of the voting results will be filed under the Company's profile on SEDAR+ at www.sedarplus.ca. About SOL Strategies SOL Strategies Inc. (CSE: HODL) (NASDAQ: STKE) is a Canadian investment company that operates at the forefront of blockchain innovation. Specializing in the Solana ecosystem, the company provides strategic investments and infrastructure solutions to enable the next generation of decentralized applications. To learn more about SOL Strategies, please visit www.solstrategies.io. A copy of this news release and all material documents regarding the Company may be obtained under the Company's profile on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov. Investor Contact: Doug Harris, Chief Financial Officer, 416-480-2488 John Ragozzino, CFA, [email protected], 203-682-8284 Media Contact: [email protected] Cautionary Note Regarding Forward-Looking Information: Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release contains "forward-looking information" within the meaning of applicable securities laws. All statements other than statements of historical fact may be forward‐looking statements and information. More particularly and without limitation, this news release contains forward‐looking statements and information relating to the filing of the voting results from the Company's annual general meeting. Forward-looking information can also be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or indicates that certain actions, events or results "may", "could", "would", "might" or "will be" taken, "occur" or "be achieved". There is no assurance that the Company's plans or objectives will be implemented as set out herein, or at all. Forward-looking information is based on certain factors and assumptions the Company believes to be reasonable at the time such statements are made and is subject to known and unknown risks, uncertainties, and other factors that may cause the actual results, level of activity, performance, or achievements of the Company to be materially different from those expressed or implied by such forward-looking information. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. There can be no assurance that such forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Forward-looking statements are made based on management's beliefs, estimates, and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates, and opinions or other circumstances should change, except as required by law. Investors are cautioned against attributing undue certainty to forward-looking statements. Disclaimer: SOL Strategies is an independent organization in the Solana ecosystem. SOL Strategies is not affiliated with, owned by, or under common control with Solana Foundation (the "Foundation"), and the Foundation has not entered into any association, partnership, joint venture, employee, or agency relationship with SOL Strategies. None of the Foundation or its council members, officers, agents or make any representations or warranties, recommendations, endorsements or promises with respect to the accuracy of any statements made, information provided, or action taken by SOL Strategies and expressly disclaim any and all liability arising from or related to any such statements, information or action. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/290789

This article first appeared on GuruFocus. Release Date: February 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Sol Strategies Inc (NASDAQ:STKE) launched Steak Sol, a liquid staking token, marking a significant strategic milestone and expanding their market offerings. The company reported a 69% year-over-year growth in staking income, with a 120% increase on a sole basis. Assets under delegation grew to over 3.3 million Sol, up from 2.8 million in the previous quarter. The company secured a partnership with Vanek, a tier 1 asset manager, as the sole staking provider for their US Botswana ETF. Sol Strategies Inc (NASDAQ:STKE) successfully completed a $30 million equity offering, enhancing financial flexibility and liquidity. The company reported a net loss of $11.9 million, dominated by non-cash items. Total operating expenses increased significantly to $7.7 million from $1.3 million in the prior period. The company's cryptocurrency holdings experienced a $53.5 million unrealized markdown due to the decline in Solana token prices. Cash at quarter end was low at $223,000, with the majority of assets held in Solana tokens. The market volatility in Solana token prices poses a risk to the company's financial performance and asset valuations. Warning! GuruFocus has detected 5 Warning Signs with STKE. Is STKE fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide more details on your M&A strategy and the types of acquisitions you are considering? A: Michael Hubbard, Interim CEO: We are actively evaluating several opportunities, focusing on both larger, established businesses with strong revenue in the Solana ecosystem and smaller teams with promising technology and strong engineering capabilities. Our goal is to enhance our internal teams and integrate exciting technologies that align with our strategic verticals. Q: How does the Liquid Staking Token (LST) fit into your existing staking business, and what are the revenue expectations? A: Michael Hubbard, Interim CEO: The LST acts as an aggregator above the validator layer, providing flexibility and additional use cases for staking. It does not compete with our native validation business but complements it by offering exposure to multiple validators. We charge a 5% fee on rewards generated by the liquid staking protocol, similar to operating a validator with a commission. Q: What are the financial highlights for the quarter? A: Doug Harris, CFO: Staking income grew 69% year over year, with a 120% increase on a Sol basis. Our reported net loss was dominated by non-cash items, and we strengthened our capital structure by retiring an unsecured credit facility. Total staking and validation income reached $2.1 million, up from $1.2 million in the previous year. Q: How has the launch of Steak Sol impacted your business? A: Max Kaplan, CTO: Steak Sol, our liquid staking token, has seen strong early adoption with over 675,000 Sol staked. It provides users with more options for staking and integrates with major Solana DeFi protocols. Our algorithmic delegation strategy minimizes risks and creates a new revenue stream by taking a 5% cut of the pool's rewards. Q: How are you addressing the recent volatility in Solana's token price? A: Michael Hubbard, Interim CEO: We focus on building sustainable infrastructure and creating value, regardless of token price fluctuations. Our strategy involves expanding our validator operations, pursuing new staking partnerships, and exploring strategic M&A opportunities. We believe that institutional adoption of blockchain infrastructure will continue, independent of short-term price movements. For the complete transcript of the earnings call, please refer to the full earnings call transcript.