Shares of Solana-focused infrastructure firm SOL Strategies surged approximately 21% on Wednesday, closing at $1.50 on the Nasdaq, following a February business update highlighting robust growth in its staking operations. The rally was driven by the rapid adoption of its new liquid staking platform, STKESOL, which surpassed 691,000 SOL staked and attracted 1,034 holders within weeks of its launch.
The company reported a significant expansion in its validator network, which grew to 33,568 unique wallets in February, up from roughly 31,000 at the start of the month. Total assets under delegation stood at 3.87 million SOL, comprising the company's treasury stake and tokens delegated by third parties. Proprietary validators generated approximately 1,276 SOL in rewards during February.
Interim CEO Michael Hubbard emphasized the company's scaling efforts, noting it now operates four parallel revenue streams: treasury staking, third-party delegated staking, liquid staking, and institutional staking services. A partnership with global asset manager VanEck was cited as part of its institutional offering. The firm's most recent quarterly results showed revenue 69% higher year-over-year, with staking and validator rewards totaling 9,787 SOL, a 120% increase from the same period a year earlier.
SOL Strategies' Solana treasury portfolio also expanded dramatically, rising to about 529,000 tokens from an initial 139,726. Despite the recent stock surge, the company's shares remain down 75.81% over the past six months, reflecting broader pressures on crypto-related equities. The update also covered governance changes, confirming Michael Hubbard's transition from interim to permanent CEO ahead of the annual shareholder meeting scheduled for March 31.
Formerly known as Cypherpunk Holdings, the company rebranded in September 2024 after acquiring SOL in Q2 2024, pivoting to focus exclusively on Solana validators and staking products. The strong performance of STKESOL is seen as bolstering the company's strategy to become a diversified staking business within the Solana ecosystem.
