Solana Co Q3 revenue beats estimates on SOL staking

Overview

• Digital asset treasury's Q3 revenue rose sharply, driven by staking on SOL holdings

• Q3 net income turned positive, reflecting large unrealized gains on digital assets

• Company repurchased $2.8 mln of stock during the quarter

Outlook

• Company did not provide specific financial guidance for the current quarter or full year in its press release

Result Drivers

• STAKING REVENUE - Revenue growth was primarily driven by staking income on company's SOL holdings

• YIELD OUTPERFORMANCE - Co achieved an average net staking yield of 5.9% APY on treasury holdings, outperforming the Solana network average of about 4.9% APY by 100 basis points

• LOWER OPERATING COSTS - General and administrative expenses fell due to lower bonus expense and professional fees

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for Solana Co is $3.50, about 91.8% above its November 10 closing price of $1.83

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)