Solana Treasury Burns $11.9M Cash Despite Staking Revenue, Forces Equity Sale

Woofun AI reports that Solana Company, a Nasdaq-listed SOL treasury trading under the ticker HSDT, faced a stark liquidity paradox in the second quarter. While the entity recognized significant staking revenue, it simultaneously burned through cash reserves, necessitating an external equity sale to sustain operations.

The core mechanism of this shortfall lies in the automatic restaking of rewards. Solana Company recorded $2.512 million in staking revenue after earning approximately 31,200 SOL, yet these tokens were immediately restaked rather than converted to fiat. Consequently, the cash-flow statement treats this income as a non-cash reconciling item, meaning the recognized revenue provided no liquid dollars for payroll or other operating costs during the period.

Per Woofun AI, the operational burn reached $11.892 million, driven by heavy G&A expenses including $1.4 million in severance for terminated PoNS employees and $5.4 million in separation costs for the former CEO and CFO. Excluding this $6.8 million in one-time charges leaves a base G&A of $4.316 million, which still exceeds staking revenue by $1.804 million. This deficit disproves a self-funding staking model, forcing the company to rely on selling assets, divesting a business, and raising equity.

Future operational pressure will hinge on the frequency of treasury monetization rather than the $25.389 million accounting loss. The recurring cash drain stems from operating costs outpacing liquid income, not from paper losses on the balance sheet.