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Solana treasury companies are growing by leaps and bounds, drawn to the cryptocurrency for its staking and broad utility. A Cantor Fitzgerald report predicts that Solana will overtake Ethereum and Bitcoin as the preferred treasury asset in corporate treasuries.
Solana Treasuries Will Outperform Bitcoin And Ethereum
Analysts at global financial services firm Cantor Fitzgerald have predicted the rise of Solana as a preferred corporate treasury asset. According to a report, the analyst notes that companies holding Solana on their balance sheets are poised to reap a slew of benefits.
Right off the bat, Cantor Fitzgerald analysts note that Solana treasury companies can mirror Michael Saylor’s Strategy to raise capital. Furthermore, these public companies will provide investors with exposure to SOL, offering a slew of perks for investors.
Companies holding SOL on their balance sheets can stake tokens to earn capital without the need for share dilution. Strategy (formerly MicroStrategy) cannot stake its massive Bitcoin holdings and has to turn to preferred stock issuances like STRD to fund purchases.
“Combining staking with treasury operations should result in Solana treasury companies growing SOL/share faster than BTC treasury companies growing BTC/share, all else equal,” read the note.
Furthermore, the report mentions Solana’s growing utility in tokenization beyond memecoins over the last year. Moody’s tapped Solana for credit rating tokenization, while Kraken has its eyes on a tokenized stock offering on the blockchain as Ethereum records stagnant figures.
A Wave Of Companies Turn To SOL
Several companies are launching Solana treasuries, eyeing the range of benefits highlighted by Cantor Fitzgerald. Hong Kong-based MemeStrategy launched a Solana treasury with a purchase of 2,440 SOL, sending its stock price on a 28% rally.
Recently, DeFi Development Corp. secured a $5 billion equity line to fund its SOL accumulation spree. Cantor Fitzgerald notes that the company is in a great position to gain from its SOL treasury reserve, given its access to US capital.
The report names Upexi Inc. and Sol Strategies Inc. as companies riding the tailwind of their SOL accumulation strategies. Over the last day, DeFi Development shares have risen by 20% while SOL Strategies have climbed by 8.3%. On the flip side, after becoming the largest publicly traded Ethereum holder, SharpLink Gaming stock lost over 70% of its value.
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Aliyu Pokima
Aliyu Pokima is a seasoned cryptocurrency and emerging technologies journalist with a knack for covering needle-moving stories in the space. Aliyu delivers breaking news stories, regulatory updates, and insightful analysis with depth and precision. When he’s not poring over charts or following leads, Aliyu enjoys playing the bass guitar, lifting weights and running marathons.
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