Solana Company Class A Common Stock (DE) 2026 Q2 Earnings Call

Please go ahead, sir. Thank you, operator.

Before we begin, I'd like to inform you that comments and responses to questions during today's call reflect management's views as of today, August 14, 2026, only, and include forward-looking statements and opinion statements, including predictions, estimates, plans, expectations, and other similar information. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued today, and in the sections entitled Risk Factors in our annual report on Form 10-K, filed with the U.S. Securities and Exchange Commission, or the SEC, on June 30, 2026, as well as in subsequent filings with the SEC. Our SEC filings can be found on our website or on the SEC's website. Investors are cautioned not to place undue reliance on forward-looking statements.

We disclaim any obligation to update or revise these forward-looking statements. Please note this conference call will be available for audio replay on our website under the News & Events section of our Investor Relations page. With that, I would now like to turn the call over to Solana Company's Chairman and Chief Executive Officer, Joseph Chee.

Good afternoon, everyone, and welcome to Solana Company's second quarter 2026 earnings call. On our first quarter call, I detailed our multifaceted digital assets treasury platform and flywheel strategy for the first time. Advisory, validated infrastructure, staking, and treasury, each designed to strengthen the others and diversify the Solana Company's revenue sources. Today, I'm pleased to report on the progress of this build-out. Our first institutional validated cluster is operational in Tokyo. We secure our first third-party stake commitment of around half a million SOL in July, and expect to report the results in the third quarter of 2026. We also address the legacy elements of the business by divesting the cash-consuming medical device business. We swap the legacy business unit out with the acquisition of a Hong Kong regulated trust company, a profitable enterprise that allows us to better realize the financial focus of our new operating model.

The assets in our treasury also continue to generate value. Staking rewards contributed to $2.5 million or 31.2 thousand SOL in the second quarter. SOL we did not have to buy and did not have to raise capital to acquire. Every one of those actions serve a single purpose, to generate momentum behind the flywheel to fuel the advancement and development of our core business lines. We are not only holding SOL as an asset, we are helping to build the infrastructure that Asia-Pacific institutions need in order to use it, and we are doing that as a trusted partner of the Solana Foundation to help drive institutional adoption for realization of Internet capital markets visions. Asia-Pacific accounts for the majority of the world's crypto users and a substantial share of global cross-border payment volume. Yet it remains significantly underserved by Solana's existing validated footprint.

We believe a passive vehicle like an ETF cannot capture adequately the opportunity that comes with offering our own Solana infrastructure and advisory services to institutional market participants. Our flywheel of treasury, validated infrastructure, and advisory is designed so that each pillar makes the others stronger and so that every turn adds SOL per share. I want to spend a moment on the state of Solana network as Internet capital markets and Solana's continued institutional adoption, given it has significant impact on our business growth. The second quarter saw accelerated growth in two areas that are directly relevant to our business. First, Solana's on-chain real-world asset market reached a new all-time high of $3.62 billion at the end of June. As tokenization spreads across financial markets, institutions are choosing Solana for distribution.

In fact, five of nearly 30 globally systemically important banks have already announced partnership with all that leverage the Solana blockchain. Second, tokenized equities on Solana generated $4.8 billion in trading volume during the second quarter, up from $1.1 billion in the first quarter. Monthly volume rose from $670 million in April to $871 million in May, before reaching $3.3 billion in June alone. As of late July 2026, 97% of all on-chain tokenized equities spot volume to date has settled on Solana, which underscores its position as a leading infrastructure for institutional tokenized securities. The institutional demand for tokenized assets on Solana is real. It is accelerating and is arriving in parallel with our build-out over the past two quarters. We would like to reiterate our conviction in the Solana ecosystem.

We believe Solana Company is the accountable listed counterparty those ensuring can actually transact with, and that's what the second quarter was spent making possible. Before I turn to our operating businesses, I want to highlight the additions we made to our team and our board, because our talent is our greatest asset. Bringing on leading Web3 native talent is what allows us to scale effectively and to execute at the highest level. On our first quarter call, we welcomed Madelene Gani as the Chief Financial Officer and Chief Operating Officer. Madelene brings experience with Ernst & Young, Gemini, Jewel, Hedera, Aptos, et cetera, and one quarter in, her impact is evident in the rigor of our reporting and in the build-out of our core business lines. In March, we welcomed Teddy Hung as Head of Business Development Advisory.

Teddy joined us from Boston Consulting Group, where he partnered with financial institutions and regulators on digital asset and money, following roles at JP Morgan and Oliver Wyman. Since 2022, he had published on digital money, stablecoins, tokenized deposit and CBDCs, and on tokenization, including tokenized funds and institutional DeFi. He leads our institutional engagement with financial institutions and strategic partners and is the driving force behind the advisory pipeline that we will come to in a moment. We also strengthened our board of directors. On April 23, the board increased its size from 7 to 9 members and appointed Michel Lee and Sergio Mello as directors to fill in the newly created positions.

Michel is a co-founder and investment partner at Cybertech Partners and a co-founder at HashKey Group, now a Hong Kong-listed company, which owns one of the largest licensed crypto exchanges in Asia and the largest blockchain technology investment fund manager company in Asia. He also brings with him more than 25 years experience in traditional capital markets, in particular in multiple roles as product structurer, originator, and risk manager across Hong Kong, Beijing, Tokyo, and London. Sergio is Global Head of Stablecoin Solutions at Anchorage Digital, where he leads business development and platform offerings for stablecoins. He previously founded Largo Finance, a consortium of financial institutions built to improve settlement using tokenized cash.

Last quarter, I outlined our diversified revenue engine comprised of 3 integrated service lines designed to serve institutional demand in one of the fastest-growing digital asset regions in the world, Asia-Pacific, and I will touch on each service line every quarter. Advisory services. We provide bespoke advisory to traditional financial institutions and corporates, helping to unlock tangible business value through blockchain adoption. On our first quarterly call, I said we expected this initiative to contribute meaningfully to revenue this year. We maintain that view. The second quarter was spent building the foundation for that revenue. Our team delivered 15 institutional education sessions and advisory workshops with banks, asset managers, and exchanges across Asia-Pacific. Developing a pipeline of durable recurring relationships is a crucial step in generating revenue, and that work is now converting. We are in negotiations with a third party, and we expect to finalize terms in due course.

In this phase, advisory is doing 2 jobs. It will generate revenue over time, and just as importantly, it is our demand generation engine, because the institution that asks us how to adopt Solana is the institution that will later need an institutional-grade validator for their operation. We are being engaged as a trusted growth partner rather than just a vendor. Validator infrastructure. Pacific Backbone is a branded, compliant, high-performance infrastructure that regulated institutions require in order to scale staking and validation on Solana. Last quarter, we said our validated nodes would be operational in late June, and our first validated cluster came online early July after intensive assessment. We now have 3 machines running in Tokyo, which altogether constitute one validated cluster, which provides us with redundancy and an independent test environment ahead of any deployment.

With institutional standards as North Star, initial deployments carry a high redundancy ratio by design, and that ratio is expected to decline as we add operating validators and build operating history. Beyond Tokyo, we are working on additional validators in APAC to address growing demand per plan, and we plan to launch over the course of the year as favorable conditions arise. Now to third-party delegated stake. We have secured commitment of external third party of around half a million SOL as of this earnings call. We expect to report our revenue from the validated business in the third quarter 2026. This is our first institutional client stake, and we believe it is proof point that matters most because it demonstrates that established counterparty will move real size onto infrastructure operated by a name listed entity. We differentiate ourselves through stability, compliance, and transparency beyond simply headline yield.