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Why are companies hoarding SOL?
Written by: Token Dispatch, Prathik Desai
Compiled by: Block unicorn
Introduction
The Solana treasury movement has transformed from a trickle into a torrent.
About four months ago, we reported that Sol Strategies was busy building a Solana asset management company. Today, the competition has become more intense and quite meme-like.
In the "Unexpected Events" record, a case of a listed company collaborating with a meme coin to operate blockchain infrastructure is quite remarkable. However, just less than two weeks ago, another Solana asset management company, DeFi Development Corp (DFDV), collaborated with the Solana meme coin Bonk.
They are not just playing around.
A few days ago, DFDV announced that it would allocate part of its SOL holdings to liquidity staking tokens (LST), which can be used for DeFi applications or for transfers, while also earning yields and staking rewards.
Enterprise fund management has fully realized native encryption. From the company purchasing Bitcoin, to operating validator nodes, collaborating with meme coins, and now pioneering liquidity staking strategies for the company.
In this article, we will delve into the significance of holding Solana as most other companies (including those linked to U.S. President Donald Trump) rush into Bitcoin.
Trend
DeFi Development Corporation (a real estate company, renamed to Janover in April 2025) made its largest Solana purchase on May 12, adding 172,670 SOL to its treasury. This brings its total holdings to 609,233 SOL, worth over 100 million dollars.
This accounts for one third of the company's total market value.
The stock market reacted enthusiastically.
Since its renaming, DFDV's stock has skyrocketed 30 times in the past two months. This is mainly due to its focus on investing in Solana.
Image source: @TradingView
Canadian company Sol Strategies is also not to be outdone, having submitted a preliminary prospectus to local securities regulators to raise up to $1 billion in funding to further invest in the Solana ecosystem.
New participants are constantly joining.
Nasdaq-listed edtech company Classover Holdings, which has mapped out a Solana-centric strategy, has raised $400 million in funding; DIGITALX, ON THE OTHER HAND, INCREASED ITS SOL HOLDINGS TO ACCELERATE STAKING YIELDS.
Why is there such enthusiasm? There are many reasons.
Does the SOL treasury really matter?
yield game
The difference between Solana treasury and Bitcoin strategy is that they can actually generate returns.
DIGITALX emphasizes its annual staking yield of 7-9%, expecting to generate an additional income of 800,000 AUD each year. In contrast, the yield of Bitcoin is 0%, and you will begin to see its appeal.
These companies are not satisfied with simple staking. They are fully committed to building infrastructure. The liquid staking initiative of DeFi Development represents the next stage of evolution: earning yields while maintaining liquidity, truly achieving the best of both worlds.
With this initiative, the company has become the first publicly traded company to hold Solana liquid staking tokens.
A partnership with BONN? This will allow both parties to collectively increase the delegated stake, which is the amount of Solana tokens committed to their validator nodes, and share the rewards in the process. It's a combination of community engagement and money management.
"DFDV and BONK are leaders in their respective fields. Through collaboration, we can benefit from each other's unique positioning and brand recognition," Parker White, Chief Information Officer and Chief Operating Officer of DeFi Development, told Decrypt.
Validators and Governance Roles
These companies are not just buying and holding SOL—they are becoming suppliers of infrastructure.
On May 5th, DeFi Development Corp announced that it has reached a final agreement to acquire the Solana validator business, which has an average delegated stake of approximately 500,000 SOL ($75.5 million).
This creates a "flywheel" effect for the company: reinvesting profits to accumulate more SOL, thereby further expanding the capacity of validators. This stands in stark contrast to Michael Saylor's strategy.
By operating validator nodes, the company can:
The story of speed and scale
Solana's transaction processing speed is faster, and transaction fees are much lower than those of competitors' blockchains like Ethereum. For companies that care about more than just the value of funds, this opens up possibilities that Bitcoin cannot match.
Unlike Bitcoin, which is primarily used for transferring value across networks, Solana can support decentralized financial applications as well as consumer applications, games, and many more scenarios.
Different Gameplay
Each company has a different strategy in this game:
DeFi Development Corp is a radical innovator.
In addition to accumulating 609,233 SOL, they are also pioneering liquid staking and meme coin partnerships. Joseph Onorati, CEO of DeFi Development Corp, told Decrypt: "The purchase volume of Solana surpassing $100 million is an important milestone—but this is just the beginning."
SOL Strategies adopts an institutional approach, focusing on becoming a top staking platform with mature capital management strategies. Their submitted $1 billion prospectus indicates that their ambitions go far beyond mere accumulation.
DIGITALX showcases yield optimization strategies, meticulously calculating staking returns and emphasizing its profit potential to shareholders. They view SOL as a dividend stock.
Risk Overview
However, things are not that simple. Let's have a calm analysis of reality.
First, the macro trap: these strategies thrive on cheap capital. Most SOL buyers raise funds through convertible bonds or equity financing tools. When liquidity runs out - and it always eventually does - everything comes to an end.
Secondly, the regulatory time bomb: Marco Santori stated that the company's SOL fund management strategy allows it to operate in a way that "simple, passive" funds cannot achieve. This is fine until regulators think your "fund management" looks like an unregistered investment fund.
Third, yield compression is approaching. As more and more validators join, that enticing 7-9% yield will shrink. This is basic economics: an increase in the supply of validators means reduced returns for each validator.
The infrastructure burden is also real. Running a validator node is not passive income – it's an operational business that requires technical overhead, upgrade requirements, and the risk of significant cuts. Missed the update window? That's when the money is gone.
Dan Kang stated in the Lightspeed podcast that the trading volatility of DeFi Development Corp is as high as 700%. This makes Bitcoin look like a stablecoin. Considering the historical network failures of Solana, you are betting on both the price and reliability.
Maximum Extractable Value (MEV) games will ultimately benefit the largest participants, just like on Ethereum.
In addition, there is competition. As of May 21, the U.S. Securities and Exchange Commission (SEC) has not approved any Solana spot ETFs, but once approved, these fund management companies will lose their unique sales advantage. Since Solana ETFs can be purchased, why buy DFDV instead? But the same reasoning applies to betting on Bitcoin with Strategy, doesn't it?
Our Perspective
The ongoing phenomenon of Solana's fund management indicates that it has moved beyond the past passive balance sheet allocation. They have transformed into active infrastructure investments capable of generating actual returns.
Its innovation lies in packaging complex DeFi operations into a company structure that people are familiar with.
But we must be clear about one thing: this is a high-wire act. These companies are betting on the price of Solana, network stability, validator economics, and their own operational excellence at the same time. When it works, it’s wonderful – a single asset can bring multiple sources of income. When it fails, you have to explain to the shareholders why your "treasury" needs a DevOps team.
Companies that can efficiently scale their validator operations while addressing the impending yield compression will benefit the most from this game. Those hoping that today's high yields will continue into tomorrow and beyond are making a miscalculated error.
When comparing Bitcoin's 50% annual return to Solana's nearly zero return over the past 12 months, it reminds us that returns are not everything. However, for companies willing to accept operational complexities for additional returns, the Solana treasury offers something that Bitcoin can never provide: cash flow from day one.
This is Treasury 2.0 - a strategy that allows your balance sheet to run code, earn yields, and occasionally collaborate with dog-themed cryptocurrencies.