Solana Company, a Nasdaq-listed SOL treasury under the ticker HSDT, recognized $2.512 million in staking revenue during the second quarter, but the rewards were automatically restaked rather than turned into cash. The company covered an estimated $11.892 million in operating cash use instead through asset sales, a business divestment, and a $7.9 million equity offering.
Staking revenue never became operating cash
Solana Company earned roughly 31,200 SOL in staking revenue during the quarter, and its cash-flow statement subtracts that revenue as a non-cash reconciling item because the tokens were automatically restaked. As a result, the $2.512 million in staking revenue did not supply the cash the company needed to run its operations, which used an estimated $11.892 million in cash instead.
The filed results also show a $25.389 million realized loss on digital assets, roughly 10.1 times staking revenue, alongside $11.116 million in general and administrative expenses and a $30.256 million net loss. However, the quarterly filing says the loss arose when the company sold SOL and when SOL posted as derivatives margin collateral was derecognized, and it adds the charge back when reconciling net loss to operating cash flow — confirming it was an accounting charge rather than an equivalent cash outflow.
Asset sales and equity plugged the gap
The company's first-half filings show $13.321 million in digital-asset sale proceeds against $16.723 million in operating cash use, and subtracting the first-quarter figures yields estimated second-quarter numbers of $7.853 million in sale proceeds against $11.892 million in cash use. Those categories are not a one-to-one funding equation, but they show the treasury leaned on asset sales while costs outran staking revenue.
Other cash came from $4.242 million in net proceeds from the PoNS sale and $7.9 million from a registered direct offering, while the company separately spent $2.331 million repurchasing shares. The PoNS transaction also produced a separate $3.065 million accounting gain, and investor put rights in the offering prospectus contributed to a $4.207 million quarter-end derivative liability.
Liquidity extends beyond the cash balance
Cash on hand stood at $3.647 million on June 30, but the company reported $26.587 million in working capital, including $21 million in current digital assets that management described as readily liquidatable. That liquidity still depends on SOL's price and market depth, and staked SOL requires a two-to-three-day unbonding period before it can be sold.
Quarterly G&A included $1.4 million in severance for terminated PoNS employees and $5.4 million in former CEO and CFO separation costs. Removing that $6.8 million leaves a rough G&A figure of $4.316 million, still $1.804 million above staking revenue. The quarter therefore falls short of a self-funding staking model — SOL holdings grew, but operating cash support came from selling assets, divesting a business, and raising equity.
Source: CryptoSlate
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