Solana Company (NASDAQ: HSDT) saw its shares surge 17% on Friday after announcing a new structure that allows institutions to borrow against natively staked SOL tokens while keeping the assets in custody.
Developed in partnership with Anchorage Digital and Solana’s Kamino lending protocol, the solution enables holders to unlock on-chain borrowing liquidity without unstaking or selling their tokens, preserving eligibility for staking rewards. The move comes as publicly listed Solana treasury companies grapple with falling SOL prices—down from $245 in September to recent lows near $70—and increasingly turn to staking income and yield strategies to stabilize their balance sheets.
The New Solution: Borrowing Against Staked SOL While Earning Rewards
For institutional holders of Solana’s native token, the dilemma has been familiar: you want to keep your SOL staked to earn those 6-8% annual rewards, but you also need liquidity to fund operations or seize opportunities. Unstaking means waiting days and forfeiting rewards. Selling means crystalizing losses and reducing your treasury position.
Solana Company just unveiled a way out of that bind.
The Nasdaq-listed firm, formerly known as Helius Medical Technologies, announced Friday a new borrowing solution that allows institutions to use their staked SOL tokens as collateral for loans. The assets remain in segregated custody accounts managed by Anchorage Digital, a federally chartered digital asset bank, while simultaneously being staked through the Kamino lending protocol to continue generating rewards.
“This new financial tool will enable institutional holders of SOL to unlock liquidity while still benefiting from the rewards of staking their tokens,” a company spokesperson said.
In practice, it works like this:
- An institution holds SOL tokens that are already staked (or can be staked) through a validator.
- Those staked tokens are placed in custody at Anchorage Digital, which maintains segregated accounts to ensure asset protection.
- Using Kamino’s lending infrastructure, the institution can borrow against the value of those staked SOL, receiving stablecoins or other assets.
- Throughout the loan period, the SOL remains staked and continues earning staking rewards, which flow back to the borrower.
- When the loan is repaid, the SOL is released from the lending arrangement.
The structure creates a win-win: liquidity without lost yield, borrowing without forced selling.
Why This Matters for Solana Treasury Companies Facing Falling SOL Prices
The launch arrives at a critical moment for Solana-focused public companies. SOL’s price trajectory has been brutal since September 2025. When Solana Company pivoted to its SOL treasury strategy in mid-September, SOL was trading around $245. By early February 2026, it had plunged to approximately $70 before recovering toward the mid-$80 range this week.
For companies holding substantial SOL on their balance sheets, that 70%+ drawdown has been devastating. Solana Company currently holds about 2.3 million SOL tokens, worth nearly $200 million at current prices . That makes it the second-largest publicly traded holder of SOL, according to The Block’s digital asset treasury data, trailing only Forward Industries which holds roughly three times that amount .
When token prices fall, corporate balance sheets take direct hits. Accounting rules require mark-to-market treatment for these holdings, meaning quarterly earnings reflect unrealized losses. Upexi, another Solana treasury company, recently reported a $179 million quarterly loss largely tied to accounting revaluations of its SOL holdings—even as staking income accounted for the majority of its revenue .
Staking income has become a lifeline. Unlike price appreciation, which is volatile and unreliable, staking rewards generate consistent yield. Sharps Technology recently disclosed that its treasury is earning roughly 7% annualized staking yield while expanding validator operations . SOL Strategies launched a liquid staking token backed by more than 500,000 SOL, adding a fee-generating product alongside its validator and treasury operations .
But staking locks up tokens. You can’t easily access the principal while it’s staked. Solana Company’s new borrowing solution bridges that gap: it lets companies keep earning staking income while accessing the liquidity they need for operating expenses, acquisitions, or opportunistic buys.
Market Reaction: Stock Bounces From All-Time Low But Remains Under Pressure
Investors clearly saw value in the announcement. Solana Company shares jumped approximately 17% on Friday, rising to around $2.30 from Thursday’s close . The move represented a notable rebound from the stock’s all-time low of $1.80, touched earlier in the week amid broader crypto market weakness.
Trading volume accompanied the rally, suggesting genuine buying interest rather than a thin, easily reversible bounce. The stock’s 17% gain outpaced both SOL’s 5% rise and the broader crypto market’s more modest recovery following Thursday’s encouraging CPI report .
Yet context matters. Despite Friday’s pop, Solana Company shares remain down roughly 90% since the company pivoted to its Solana treasury strategy in September 2025 . The stock’s trajectory reflects both the collapse in SOL prices and the market’s skepticism toward small-cap crypto treasury plays.
The company’s market capitalization now hovers around $50 million, a fraction of the value of its SOL holdings. That disconnect—trading at a discount to net asset value—suggests investors are pricing in significant risks: further SOL downside, operational challenges, or governance concerns.
How It Works: The Partnership With Anchorage Digital and Kamino Protocol
The technical architecture behind Solana Company’s new offering combines institutional-grade custody with decentralized lending infrastructure.
Anchorage Digital: The Custody Layer
Anchorage Digital, a South Dakota-chartered trust company and one of the few federally regulated digital asset banks, provides the custody foundation. The institution holds the staked SOL tokens in segregated accounts, ensuring that borrower assets remain distinct from the lender’s balance sheet and protected in bankruptcy scenarios.
This structure matters for institutional participants. Regulated custody addresses the counterparty risk concerns that have historically kept traditional finance on the sidelines. If a borrower defaults, the collateral is held by a qualified custodian with clear legal frameworks for disposition.
Kamino Protocol: The Lending Layer
Kamino, a leading lending and liquidity protocol on Solana, provides the on-chain mechanics. The protocol enables users to deposit collateral—in this case, representations of staked SOL—and borrow against it, with interest rates determined algorithmically based on supply and demand.
Kamino’s integration with Solana’s staking infrastructure allows the protocol to verify that deposited SOL is actively staked and earning rewards. When borrowers deposit their staked SOL tokens (or receive staked SOL representations), Kamino interacts with Solana’s stake pools to ensure the tokens remain in staking while serving as collateral.
The Borrower Experience
For an institution using the solution, the process is streamlined:
- The institution transfers SOL to Anchorage Digital, which stakes it through a validator.
- The staked SOL is then made available as collateral on Kamino via Anchorage’s integration.
- The institution borrows against that collateral, receiving USDC or other approved assets.
- Throughout the loan term, staking rewards accrue to the borrower, typically paid out periodically.
- When the borrower repays the loan plus interest, the SOL is released from the lending arrangement and can be unstaked or transferred.
The solution works for both natively staked SOL (tokens staked directly through validators) and liquid staking tokens (representations of staked SOL that can be traded). This flexibility accommodates different treasury strategies.
The Bigger Picture: Solana Treasury Firms Turn to Staking Income and On-Chain Financing
Solana Company’s move is part of a broader industry trend. As token prices stagnate or fall, companies that built treasuries around crypto assets are seeking ways to generate yield and access liquidity without selling their core holdings.
SOL Strategies and Liquid Staking
SOL Strategies, another publicly traded Solana-focused firm, launched a liquid staking token last month backed by more than 500,000 SOL . The token, which represents staked SOL, can be traded or used in DeFi while the underlying SOL continues earning staking rewards. The strategy generates fees for SOL Strategies while expanding its validator operations.
Sharps Technology and Staking Yield
Sharps Technology, which holds a significant SOL treasury, disclosed that its staking operations now generate approximately 7% annualized yield . That income stream helps offset the mark-to-market losses from falling SOL prices and provides operational runway independent of price appreciation.
Upexi: Staking Income Dominates Revenue
Upexi reported that staking income now accounts for the majority of company revenue, even as lower SOL prices drove a $179 million quarterly loss largely tied to accounting revaluations . The company’s experience illustrates the dual reality for Solana treasury firms: staking provides steady cash flow, but balance sheet volatility remains a challenge.
The Common Thread
What connects these stories is a shift in strategy. In 2024 and early 2025, many companies simply held SOL, betting on price appreciation. By early 2026, that bet has proven costly. The survivors are those that treat SOL not as a speculative asset but as productive capital—staking it for yield, using it in DeFi, and now borrowing against it to fund operations.
Solana Company’s new solution adds another tool to this kit. By enabling borrowing against staked SOL, it allows firms to access liquidity without sacrificing yield or selling into a depressed market.
Risks and Considerations: What Happens If SOL Price Drops Further?
No financial innovation comes without risks, and borrowing against volatile collateral requires careful risk management.
Liquidation Risk
If SOL prices fall significantly, borrowers may face margin calls or liquidations. Lending protocols like Kamino automatically monitor collateral ratios; if the value of borrowed assets approaches the value of deposited collateral, the protocol may liquidate positions to protect lenders.
For borrowers using staked SOL as collateral, liquidation would mean losing their SOL at potentially unfavorable prices. The risk is magnified during sharp market downturns, when cascading liquidations can drive prices even lower.
Custody and Counterparty Risk
While Anchorage Digital provides regulated custody, the arrangement still involves multiple parties: the custodian, the lending protocol, and potentially the validator. Each introduces some degree of counterparty risk. Institutional borrowers will need to conduct due diligence on all participants.
Smart Contract Risk
Kamino, like all DeFi protocols, operates through smart contracts. While the protocol has been audited and has operated without major incident, smart contract risk can never be fully eliminated. A bug or exploit could result in loss of funds.
Regulatory Uncertainty
The regulatory landscape for crypto lending remains in flux. While the GENIUS Act has provided some clarity for stablecoins, broader market structure legislation like the CLARITY Act remains stalled amid disputes over stablecoin yields . Changes in regulatory treatment could impact the viability of these lending arrangements.
What Is Solana Company? A Quick Overview
Solana Company (NASDAQ: HSDT) began life as Helius Medical Technologies, a medical device company focused on neurological wellness. In September 2025, the company executed a dramatic pivot, rebranding as Solana Company and announcing a treasury strategy centered on accumulating SOL tokens .
The pivot was part of a broader trend of small-cap companies seeking to capitalize on crypto enthusiasm. Unlike MicroStrategy’s Bitcoin-focused strategy, Solana Company placed its bet on the Solana ecosystem, citing the network’s speed, low fees, and growing developer activity.
Today, the company holds approximately 2.3 million SOL tokens, worth nearly $200 million at current prices . It operates validators, participates in governance, and now offers staking and lending solutions to institutional clients. Its shares trade on Nasdaq under the ticker HSDT.
The company’s strategic shift has been volatile. At its peak following the pivot, shares traded above $20. Friday’s close near $2.30 represents a recovery from all-time lows but remains far from those heights.
The Bottom Line: Innovation Amid Adversity
Solana Company’s 17% stock jump on Friday reflects genuine excitement about its new borrowing solution—and relief that the firm is finding creative ways to navigate the bear market.
The ability to borrow against staked SOL while continuing to earn rewards addresses a real pain point for institutional holders. It unlocks liquidity without forcing sales, generates yield while accessing capital, and demonstrates that crypto treasuries can be managed actively rather than passively.
Yet the underlying challenges haven’t disappeared. SOL remains volatile, the stock trades at a discount to asset value, and the broader regulatory environment remains uncertain. Friday’s rally is encouraging, but the company—and its peers—still face an uphill battle.
For investors watching Solana Company, the key question is whether this innovation can translate into sustainable financial performance. If the borrowing solution attracts significant institutional participation and generates fee income, it could help stabilize the business. If SOL prices resume their decline, even the cleverest financial engineering may not be enough.
As one analyst put it: “This is a smart move that shows the company is thinking creatively. But at the end of the day, they’re still leveraged to SOL’s price. The solution reduces the pain of holding, but it doesn’t eliminate it.”
For now, Solana Company has bought itself time and attention. Whether that’s enough to reverse its 90% decline remains to be seen.
