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Thank you for standing by, and welcome to the Solana Company's First Quarter Operating Results Conference Call. [Operator Instructions] As a reminder, today's program is being recorded.

And now I'd like to introduce your host for today's program, Sarina Jassy, Investor Relations. Please go ahead.

Thank you, operator. Before we begin, I would like to inform you that comments and responses to your questions during today's call reflect management's views as of today, May 15, 2026, only and includes 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 earlier today and in the sections entitled Risk Factors in our annual report on Form 10-K filed with the United States Securities and Exchange Commission or the SEC on March 31, 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 that this conference call will be available for audio replay on our website under the News and Events section of our Investor Relations page.

With that, I would now like to turn the call over to Solana Company's Chairman, President and Chief Executive Officer, Joseph Chee.

Thank you, Sarina. Good afternoon, everyone, and welcome to Solana Company's First Quarter 2026 Earnings Call. I'm pleased to report on another quarter of significant progress. as we continue to build out our multifaceted digital asset treasury platform and execute our Solana treasury strategy.

Before diving into our strategic initiatives, I would like to highlight key additions to the Solana Company in early April. We welcome Madelene Gani as our Chief Operating Officer and Deputy Chief Financial Officer; and today announced that she will serve as our Chief Financial Officer, Treasurer and Secretary. Madelene is joining us on this earnings call for the first time, and she will be presenting our financial results later in the call.

In late April, we closed the strategic capital raise as disclosed in our public filings. The incremental offering led by global institution investor, Mirae, we participation by at mass and inflection point demonstrating both deep commitment from leading APAC institutional investors and the market premium for our Solana strategy.

Now turning to the first quarter of 2026. In a quarter of crypto market volatility and headwinds, I'm proud that our first quarter's performance and how we stayed focused on execution with strategic use of capital markets, on chain opportunities and operational discipline enabled the company to maximize our Solana shares during the first quarter. Our first quarter revenue increased exponentially from the prior year. Notwithstanding the volatility of Solana price, we remain resilient and continue our execution of generating consistent taking report of 32,500 Solana tokens in the first quarter 2026 compared to 34,000 Solana tokens in the fourth quarter 2025.

At Solana Company, we are building a diversified revenue engine, architect to target institutional demand in what we believe to be one of the fastest-growing digital asset region in the world. We support the growth is on chain ecosystem through 3 integrated revenue-generating service lines. Advisory Services, we provide bespoke advisory traditional financial institutions and corporates, enabling them to unlock tangible business value through blockchain adoption. Second, validated infrastructure, we offer what we call, Pacific Backbone, a compliant high-performance infrastructure necessary for regulated institutions to scale sticking and validating validation activities in Solana. Platform business is the third piece. We bring an AI-powered end-to-end compliance stack. This serves as the critical foundation for long-term, collaborative digital asset operations, seamlessly connecting our global business partners.

With these initiatives represent a multiyear trajectory, we expect the operational impact to be felt within this fiscal year. We are not simply participating in APAC growth trend. We aim to be positioned to drive meaningful impact through accelerated Solana adoption through our bespoke advisory services, Pacific backbone compliant and high-performance infrastructure and orchestration through our platform business.

To illustrate how this unlock in recurring revenue, we view them as a self-reinforcing flywheel. First, our bespoke advisory services provide a strategic road map and implementation services for major financial institutions and corporates to transition on chain and unlock tangible business outcomes. By focusing on high-impact use cases, specifically stablecoin payments and real-world asset organization, we lowered the barrier to entry, moving our partners from concept execution with speed and regulatory confidence.

Next, the Pacific Backbone serve as the foundation of our flywheel. The infrastructure provides the enterprise-grade throughput, security, compliance operation that institutional client demand by offering what we believe to be a trusted, high-performance environment, we enable our partners to scale the on-chain operation with reliability unique to our specialized APAC footprint. In early May, we announced a strategic partnership with Jito to advance yield optimization capabilities to our validated operation.

The broader digital assets -- the Pacific -- the platform business is our AI-powered orchestration foundation, offering an end-to-end compliance and operations stack. It acts as a conservative -- connective tissue for collaborative digital asset operations. It continuously bring and connect business partners, serving as an essential layer to foster digital asset operation and business partnerships. Asia Pacific represents the majority of the world crypto users had a subset share of global cross-border payments and trading activities yet it remains significantly underserved by Solana's existing network infrastructure.

We believe our integrated approach, advisory infrastructure and platform position us to serve this market potentially capture meaningful recurring revenue streams, if and as adoption accelerates.

With that, before I turn it over to Cosmo to elaborate on our treasury management and capital markets results, I would also like to mention that as you were able to see now in our subsequent section of 10-Q, we have completed the divestiture of our cash burning [ PoNS ] business, [ medical device ] business and completed a series of rationalization steps in Q2. The positive financial results will be felt in Q2.

Let me pass the putting back to Cosmo.

Thanks, Joe. Hey, everyone. I'm Cosmo Jiang, Director at Solana Company and General Partner at Pantera Capital. Pantera Capital is the asset manager for us a lot of companies, digital asset Treasury since the close of the pipe transaction in September 2025. And I am pleased to report on another quarter of disciplined execution.

As we discussed last quarter, the digital asset treasury market has moved on from its genesis phase and is solidly in its execution and consolidation phase. The first quarter of '26 continues to validate this. We saw a further differentiation among that with operators that have institutional-grade infrastructure, transparent reporting and disciplined capital management beginning to outperform.

The broader digital asset market experienced significant volatility during the quarter, with Solana declining approximately 33% in price from December 31, 2025, through the end of the first quarter. Despite this happened, we remain focused on our core strategy, which is growing our Solana per share through accretive capital allocation, generating consistent stating yields, and building out the revenue and generating business that is designed to drive long-term value creation.

Staking remains one of the most important and differentiated aspects of our business for the quarter of 2026 -- for the first quarter of 2026, our average net staking yield was 6.9%. This compares to the system-wide average of approximately 6.0% over the same period, representing outperformance of 90 basis points. This yield is generated through careful validator selection active MEV capture and continuous rebalancing the same institutional approach that Pantera applies across its broader digital asset portfolio. Stacking rewards are also automatically restated to compound returns resulting in consistent daily on chain revenue.

Turning to capital markets. We remain committed to capital allocation strategies that are accretive on a sold per share basis regardless of market conditions. With our stock traded at a discount from net NAV during periods of broader market weakness we executed approximately $3.5 million in share repurchases during the first quarter and $5.0 million in share repurchases year-to-date under our previously announced repurchase program. as reflected in our treasury stock position. These repurchases were funded through strategic sold sales at prices that were at a discount to our NAV per share at the time of repurchase, making them accretive to our NAV per share.

At the end of April, we successfully completed a strategic capital raise of $8 million through a structured equity offering, a portion of which we deployed into SOL purchases at favorable entry points. This capital raise was at a price of $2.60 per share, which at the time was roughly 1.1x mNAV or multiple of NAV, and the result immediately accretive to our sold per share. This is the highest multiple of NAV capital raise of any Solana treasury that we know has completed since the beginning of the downturn in 2025.

We believe this is -- our ability to do so is indicative of both industry factors, namely that the digital assets market has shown some signs of bottoming as well as factors, idiosyncratic to capital market participants recognizing and appreciating our relative execution. We believe the ability to operate opportunistically on both sides of the capital structure, issuing our stock at a premium and buying back and trading at a discount is a powerful mechanism for creating shareholder value across different market environments.

As of March 31, 2026, Solana Company held approximately $19.8 million of Solana across all categories, including liquid holdings, stake positions and receivables, and $4.4 million of cash and cash equivalents. The company's diluted share count, including common shares in the money warrants was 82.5 million shares as of March 31, 2026. As of May 12, 2026, Solana Company held 2.37 million SOL tokens. The company's diluted share count, including common shares and in the money warrants was 86.0 million shares.

I will now turn the call over to Madelene Gani, our Chief Operating Officer and Deputy CFO for the detailed financial results.

Thank you, Cosmo, and thank you, Joe, for the introduction. I'm thrilled to be joining Solana Company is such an extraordinary inflection point, and I'm honored to present our financial results for the first quarter of 2026.

Our first quarter revenue was $3.6 million, consisting primarily of $3.4 million in staking revenue and $0.2 million in other revenue. This represents significant growth from the $49,000 in revenue recorded in the first quarter of 2025 and which did not include contributions from our staking revenue attributable to our treasury strategy. Cost of revenue for the first quarter was $180,000, resulting in a gross profit of $3.4 million compared to a gross loss of $72,000 in the prior year period. Cost of revenue increased primarily due to the increase in staking revenue-related costs.

General and administrative expenses for the first quarter of 2026, were $5.2 million compared to $3.9 million in the first quarter of 2025. The increase reflects the expansion of operations associated with the company's digital asset treasury strategy. During the quarter, we recorded an unrealized loss on digital assets and digital assets receivable of approximately $89.2 million, reflecting the approximately 33% in SOL prices during the quarter. We also recorded a realized loss on capital on digital assets of $7 million, related to strategic sales executed as part of our capital allocation program and an unrealized loss on our digital assets fund investment of $1.7 million due to the decline in the value of SOL.

Total operating expenses for the first quarter were $103.1 million compared to $3.9 million in prior year. Operating expenses included noncash charges of $89.2 million for unrealized loss on digital assets and digital asset receivable $7 million for realized loss on digital assets-related strategic sales executed as part of the company's capital allocation program and $1.7 million for unrealized loss on digital assets fund investment due to the decline in value of sold SOL.

The resulting loss from operations was $99.6 million compared to a loss of $4 million for the prior year period. Nonoperating expense for the quarter was $0.2 million, primarily attributable to dividend income earned on investments of excess cash in money market funds, offset by foreign exchange loss due to fluctuations in the Canadian to U.S. dollar exchange rates as compared to $0.2 million nonoperating income for the prior year period.

We reported a net loss for the first quarter of 2026 of $99.8 million or a loss of $1.3 per basic and diluted common share based on weighted average shares outstanding of 76.6 million. This compared to a net loss of $3.8 million was $382.29 per basic and diluted common share based on weighted average shares outstanding of 10,000 in the prior year period.

As of March 31, 2026, we had total assets of $200.7 million, including $4.4 million in cash and cash equivalents, $21 million in current digital assets and $172.8 million in long-term digital assets across various categories, including state positions, restricted assets, receivables and fund investments. During the quarter, we executed approximately $3.5 million in share repurchases due to our previous authorized stock repurchase program, which are reflected in treasury stocks on our balance sheet.

With that, I now hand it over to Joseph for closing remarks.

Thank you, Mady. Well, Again, thank you all for joining the Solana First Quarter 2026 operating results update. We look forward to updating you on our progress again in the coming quarters. Operator, please open the call for questions.

[Operator Instructions] Our first question comes from the line of Matthew Galinko from Maxim Group.

Maybe if we could talk about the flywheel that you discussed in the prepared remarks, maybe particularly around the advisory. Maybe touch on what sort of traction you have there, what level of engagement you have? And is there a revenue model there? Or is it primarily just sort of engaging counterparties into the Solana ecosystem?

Thank you, Matthew. I guess, since I talk about that, I'll address your question here. If to answer you directly, yes, it's supposed to be a revenue-generating business line. And this advisory business actually work very closely the Solana foundation in targeting some of the major financial institutions and some tech corporates in the region. And we are in the process of signing some contracts, which represent relatively significant revenues to us even for this year, and we expect to do that over time.

A lot of balance institutions in this in APAC are sort of coming from behind this whole trend of major banks, asset managers, different positions in the U.S., either getting on the asset cash management products on chain and different kind of products as well. And also somebody getting on to stablecoin-based payments with the U.S. leading the way. And now there are a lot of institutions that have not done much in the past, now have mandated from the top to get this thing done as soon as possible. And a lot of them have not spent a lot of time understanding how to get that done and they have some basic understanding, but it comes to execution, project managing the whole thing, based on the container coming from the top they need some help.

And I think with us and the foundation in this part of the world, we are like the first -- let's start from the last questions. And I think that's a good time that we could -- to suggest that we could help them manage this and then charge them for managing the project.

All right. That's very helpful. And maybe just as my follow-up, I think currently, you operate with a pretty lean structure. And so I'm wondering how you deliver those advisory services. And to the extent that you're generating material revenue there, how do you think about the allocation of any cash flow you might begin to generate from those sorts of activities.

Okay. Good question, Matthew. We are doing this very carefully. We do not want to -- we're not going to let cost leave the revenue per se, right? With the current team of 2.5 people, we have hired a head of business development advisory from Boston Consulting Group and a couple of juniors we get going. And we believe that with the revenue that we're generating from the contracts, we can easily cover the cost that we just incurred on the human resources side.

And the additional revenue net of cost or cash flow net of cost will be used for -- to execute our strategy. The core one is to purchase SOL, and obviously, some of that will be used to reinvest in some of the infrastructure that we need to build to provide more services to these clients or partners that we bring on board to generate more revenues on a recurring basis to Solana Company.

And our next question comes from the line of Fedor Shabalin from B. Riley.

Thank you very much, operator, and good afternoon, everyone. I have a just one on the Pacific Backbone infrastructure. Can you tell us where we are with [ facilitator ] infrastructure today versus where we were -- it was at the quarter end? And specifically how much SOL is currently elevated to if any? And what's the stake ramp trajectory you're targeting over the next 2, maybe 3 quarters? Just how should we think about the economic uplift from the [ GT ] integration on MEV capture relative to the tender taking yield you're currently realizing.

Yes. Fedor, thank you for your question. Since we announced it a couple of months ago, we have also mandate the same team, which build out the advisory business to build the infrastructure for the validation business. We have put together a detailed execution plan and tracking quite well. The notes that we are building at the moment, we are starting with 3 notes will be operational according to the plan in late June.

As on your question of how much SOL, especially third-party SOL that we will bring on board, we are still in the process of pitching, and we already have some verbal commitments. But at this stage, I probably cannot provide you with a projected number. But based on what we could see, it will be a fairly significant number that would add good revenues to our platform over time. It is something that we want to build not only to serve the clients that we would attract on the advisory services platform. For many of the larger players that have SOL at the moment, they're probably stacking that SOL with some players which are not structured the way we are structured. At the moment, we are structuring this as the high end and top quality institutional-grade infrastructure, and we would have hired a certification engineers to make sure that the whole process front and back will be probably certified and will meet the requirements of the most demanding institution across APAC.

We believe that we can move some of the SOLs from some of the players which stake they are SOL with other less smaller or less institutional grade players. So that we have high hope , but I guess I will probably can only give you a more, I guess, higher confidence guidance in the next quarter.

That's super helpful. And another one is on how should we think about buyback cadence going forward. And overall, Solana accumulation, like anything -- should we expect something beyond stake in revenue, or in Solana token, I mean or at least at current MNF level, you will like stick with [ staking ] only and will not pursue any external purchases of extra tuck-ins.

Thank you. That's a good question. It's something we debate all the time. I think the right person to answer this question is Cosmo. Why do I pass it on to Cosmo.

Fedor, thanks for the question. As you can appreciate, we're constantly monitoring or constantly having dialogues with capital providers to see where we can potentially raise capital in an accretive way, which we're really excited to do this past quarter with major strategic investors in Asia. And we're also evaluating when our stock trades below NAV, what we do in that case. And we're pretty proud of the fact that we are trading well above most of our peers and certainly the average of our peers in terms of mNAV, that does mean that buybacks are less accretive for us than they are for some of our peers at this point because our mNAV multiple has held up.

But that does mean -- in which case, it means like the capital markets windows opens up a little bit more on the accumulation front as opposed to the buyback front. And so it'll -- I'm sure there will be volatility in our multiple as well as volatility in Solana, and we'll just try to make the best decision as we go forward. But I would expect that at these levels, that we're looking to raise capital accretively as opposed to buying back aggressively.

And I promise my last one, it will be quick. It's on SG&A run rate going forward. So obviously, you're building infrastructure of the operating business you described in Asia? And how should we think about the risk line item run rate from here? Is the 1Q reasonable jumping off point or maybe are the step up we should model in 2Q and 3Q as you scale the business, maybe a head count will grow from 2.5% to 3.5% or 4.5%.

Fedor, we don't have a set of board-approved numbers, if you could disclose on this call to guide you on that. But we could probably give you the thinking process behind it. So it might be helpful to you on the building out your model. What we're building here, including the validated infrastructure. And first of all, we are building this in Asia, the kind of IT talent that you could hire for your money is -- versus the Western world is [ night and day ]. And then in terms of the third-party consultants that can hire to build out certain part of our infrastructure, they also come at a very low cost. I don't think you should expect a very large CapEx going into this. This is all at a very, very low level, you're probably not going to notice it in the overall financial results.

And I mentioned at the end of my presentation that we have divested in the second quarter this year, the medical device business [ PoNS ]. And that will -- that will slow down after the one-time and everything else. And that's a serious that we took to rationalize our cost base, but that's all happening in the second quarter. And to do, you would expect some pretty significant positive impact of that on our operation on a recurring basis going forward. We can only talk about that in the second Q -- where the second Q results are available and we do the next call.

So I think, all in all, in a way that I don't think you should be expecting an uptick in your cost and then 2.5% to 3.5% to 4.5% that will rely on the additional revenue, i.e., the contract we signed rather than we do let the cost front run the revenue. So I think that's sort of -- that's the principle that how we agreed to read out this business because we still want the investors, they're investing in us that getting access to Solana exposure, and they would not be power on by additional costs that will skew the calculation.

Ladies and gentlemen, for your participation in today's question-and-answer session. This does conclude the question-and-answer session. I'd like to hand the program back to Joseph Chee for any further remarks.

Well, I guess thank you for that. And again, thank you for joining us today on the call. And we look forward to updating you on our progress in the coming quarters. And for some of you, if they have call set up separately, happy to provide more colors in what's going on and what's going to happen. Thank you very much.

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

Good day, and thank you for standing by. Welcome to the Solana Company Fourth Quarter and Full Year 2025 Conference Call.

[Operator Instructions]

Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your first speaker today, Sarina Jassy of Investor Relations. Please go ahead.

Thank you, operator. Before we begin, I would like to inform you that comments and responses to your questions during today's call reflect management's views as of today, March 30, 2026, only, and will 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 earlier today and in the sections entitled Risk Factors in our annual report on Form 10-K for the year ended December 31, 2025, filed with the United States Securities and Exchange Commission, or the SEC on March 30, 2026, and in other 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 that this conference call will be available for audio replay on our website under the News and Events section of our Investor Relations page.

With that, I'd now like to turn the call over to Solana Company's Executive Chairman, Joseph Chee.

Thank you. Good afternoon, everyone, and welcome to Solana Company's Fourth Quarter and Full Year 2025 Earnings Call. I'm Joseph Chee, the Executive Chairman of Solana Company, and I'm pleased to report on transformative year for Solana and the shareholders. When we closed our $500-plus-million PIPE transaction in September 2025, we described it as a new beginning. Looking back over the full year and particularly over the fourth quarter, I believe we have validated the ambition with tangible results across every dimension of our strategy.

Our digital treasury is larger. Our efficacy is broader. Our capital markets tool kit is more sophisticated, and we have expanded the business well beyond a passive holding structure into a multifaceted platform with distinct value-adding legs. I'll speak to the strategic picture and then Cosmo Director at the Solana Company will take you through the operational and financial results. As we closed out 2025, I want to walk through the 3 distinct activities that together define the foundation of the Solana company and how each contributes to our goal of creating long-term shareholder value by growing Solana Company's SOL per share and contributing to the growth of Solana ecosystem.

The first is capital markets. from our ATM programs and other offerings to share buybacks to operating businesses that synergize directly with our SOL holdings and the broader Solana ecosystem. The second is asset management. The core accumulation or SOL and this disciplined deployment of capital to grow our holdings in a way that's accretive on a per share basis. This includes taking yield which is the unchanged income we generate by taking substantially all of our SOL. This is not passive. It requires a rigorous validated selection, MEF optimization and continuous rebalancing and it produces a meaningful and growing revenue stream. Cosmo will speak to the specific API we achieved in '25 and year-to-date, 2026 and how that compares to public benchmarks.

It also includes intelligent risk-adjusted deployment into other new opportunities on Solana. We'll talk about our on change partnership with Anchorage and Kamino on this front later. The third is marketing and partnership. Our role as a designated DAT partner to the Solana Foundation, particularly in Asia Pacific, and the broader institutional outreach that has defined our public presence since launch. This has included publishing educational content on Solana and DATs on our website, participating in prominent podcasts, engaging with local print and online media and presenting a key ecosystem industry events, including Solana Breakpoint Abu Dhabi, Solana Accelerate Consensus Hong Kong, Hong Kong FinTech Week, Token to our online GTX, Japan FinTech week, among others.

The company has also conducted investor roadshows and partnership meetings with Solana Foundation with a focus on underpenetrated Asian markets, including Mainland China, Japan, Hong Kong, and Singapore. In addition, the market has delivered -- the company has delivered educational presentation on Web3 and Technology Executive Programs at leading Universities and Institutions and make regular appearances on mainstream financial media outlets, including CNBC and Bloomberg. We are also very active in engaging the bankers and research analysts of investment banks and brokers to promote coverage on Solana and Solana company. The company also intends to establish a strategic partnership with major financial institutions across key markets, which may adopt Solana as their underlying blockchain to support payment and tokenization initiatives.

In February, we announced a landmark collaboration with Anchorage Digital and Kamino, making HSBC the first digital asset treasury to enable borrowing against natively stake SOL held in qualified custody. This is the first of its kind triparty custody model to access on-chain protocols on Solana. Under the structure, Anchorage Digital acts as a collateral manager for our natively-stakes sold, allowing us to earn taking rewards, while simultaneously unlocking borrowing power on Kamino all while our assets remain in a segregated account at Anchorage Digital Bank, never leaving custody. Anchorage Digital's Atlas collateral management system provides 24/7 automated oversight of loan-to-value ratios, orchestrate margin at collateral movements, and execute rules-based liquidation when required, giving us institutional-grade risk and compliance control alongside direct on chain participation.

Also in February, we announced the Pacific backbone, a strategic roadmap to invest in a new low latency cluster across the Asia-Pacific region, beginning with notes, connecting SOL, Tokyo, Singapore and Hong Kong. This infrastructure buildup is designed to drive staking and validation, support ecosystem development in the region and diversify our revenue streams. Asia Pacific represents the majority of the world's crypto users and a substantial share of global cross-border payments and trading activities. Yes, it remains significantly underserved by the Solana existing network infrastructure.

The Pacific backbone is our commitment to closing that gap. We plan to begin activating notes immediately, optimize performance and adopt new technologies in the second half of 2026 and launch liquidity-related products and services within the next 12 to 18 months. The buildout is designed to serve Market Makers, High-Frequency Traders, Exchanges and Traditional Finance Partners and is expected to include DeFi, liquid staking AMM RPC and execution services for institutional partners in the region.

With that, I'll turn it over to Cosmo to elaborate on our treasury management and capital markets results and some of the key financials. Cosmo?

Thank you, Joe. Hello, everyone. I'm Cosma Jiang, Director of Solana Company and General Partner at Pantera Capital. Pantera has been the asset manager for Solana Company's Digital Asset Treasury since the close of the PIPE transaction in September 2025. And I'm proud to report on a relatively strong first 6 months of operation. As I noted last quarter, we believe the genesis phase of the digital asset treasury market is over. The white space that we identified earlier in 2025 has been substantially filled. We're now squarely in the execution and consolidation phase, and I believe the fourth quarter validated that thesis. We've seen meaningful differentiation among that with stronger operators or those with institutional sponsorship, transparent reporting and disciplined capital management starting to separate from the others. We believe Solana Company is among that leading group and the results we are reporting today, we believe, reflect that.

Let me begin with staking as it's one of the most important and differentiated aspects of our business. As of December 31, 2025, Solana Company had staked substantially all of its SOL holdings. For the fourth quarter of 2025, our internal calculations reflect an average net staking yield of 6.8%. This compares to the system-wide average of 6.2%, using public benchmarking data from research provider Blockworks over the same time period, representing outperformance of nearly 60 basis points. Year-to-date in 2026, our internal calculations show our staking yield has been 7.0% APY compared to the system-wide average of 6.0%, continuing to that same pattern of disciplined outperformance.

This staking yield is generated through careful validator selection, active MEV capture and continuous rebalancing, the same institutional approach that Pantera implies across its broader digital asset portfolio. Taking rewards are automatically restated to compound returns and result is consistent daily on chain revenue that can fund the operations of the business and grow the company's SOL per share. As Joe mentioned, we have recently expanded our yield generation options through an announced collaboration with Anchorage Digital and Kamino, which provides institutional-grade infrastructure for both custody and on-chain borrowing. We're in the early stages of executing against this opportunity and believe it could have the potential to drive an additional 100 to 200 basis points of yield across our asset base.

Turning to capital markets. Different market environments and valuation paradigms provide different opportunities. And regardless, we plan to always pursue actions that are accretive on a per share basis. Since the launch of our Digital Asset Treasury, we've been able to grow SOL per share through both share issuance as well as share buybacks. Early in the fourth quarter, when our stock traded well above 1.0x mNAV our ATM program was a useful tool for disciplined issuance. We raised over $29 million through the ATM program with proceeds deployed primarily into SOL purchases.

When the broader digital assets markets pulled back, we also saw our valuation multiple compressed to below 1.0x mNAV, at which point, share repurchases became an accretive option. We have now executed over $3 million in share repurchases year-to-date under our buyback program adopted this past November, funded primarily by the sale of Solana at prices that were accretive to NAV per share. We believe the ability to operate on both sides of the capital structure, which means issuing when trading at a premium and buying back when trading at a discount is what makes the ATM and buyback program together such a powerful toolkit to create shareholder value in almost any market environment for this business model.

Looking ahead to 2026. We continue to evaluate the full spectrum of capital formation alternatives, including convertible debt, warrant-linked structures and strategic M&A. We're often in exploratory conversations with many different investors, ranging from retail brokerages to family offices, to strategic corporates, to institutional hedge funds and long-only funds, and we do welcome any shareholder feedback and referrals.

Next, our Treasury. As of December 31, 2025, Solana Company held 2.36 million SOL tokens and $7 million of cash and stable points. The company's diluted share count, including common shares and in the money warrants was 84.1 million shares. As of March 27, 2025, Solana Company held 2.33 million SOL focus. The company has diluted share count, including common shares and in-the-money warrants was 82.6 million shares. That means that in the 6 months since the beginning of embarking on our Digital Asset Treasury strategy on September 18, we have actually increased our SOL per share by 14%. This is measured using the value of the capital grade divided by the price of SOL and the diluted share count at transaction close compared to the March 27 figures just mentioned. We are proud of that meaningful per share accretion from our active management.

I will now turn the call over to Jeff Mathiesen for the financial results.

Thank you, Cosmo. Our financial results reflect our full fourth quarter of DAT operations and the full year ended December 31, 2025. Our fourth quarter revenue of $5.2 million included staking revenue of $5.1 million, comprising the majority of the increase from the prior year period. For the full year 2025 total revenue was $6 million, including $5.5 million of staking revenue compared to $0.5 million for the full year 2024. For the fourth quarter, cost of revenue was $0.2 million, in line with the prior year period. Selling, general and administrative expenses for the fourth quarter of 2025 were $13 million compared to $2.2 million reported in the fourth quarter of 2024 due primarily to increased noncash compensation costs, salaries and wages, digital asset management and custodian fees as well as legal and professional fees in conjunction with the addition of the company's VAT strategy.

Research and development expenses were $0.9 million, in line with the prior year period. Total operating expenses for the fourth quarter of 2025 were $206.1 million compared to $3.1 million in the fourth quarter of 2024. Operating expenses included noncash charges of $178.3 million of unrealized loss on digital intangible assets and digital assets receivable, $12.1 million for realized loss on digital intangible assets and $2.1 million for unrealized loss on digital assets and investment due to the decline in the value of SOL.

The resulting loss from operations for the fourth quarter of 2025 was $201.1 million compared to a loss of $3.1 million in the prior year period. Current year nonoperating income for the fourth quarter was $526.6 million and included a $526.3 million gain from the change in fair value of derivative liability related to the stapled warrants from the September PIPE transaction compared to nonoperating loss of $0.8 million in the prior year period, comprised mostly of foreign exchange loss. We reported net income for the fourth quarter of 2025 of $325.6 million or earnings of $4.25 per basic and diluted common share based on weighted average shares outstanding of $76.6 million.

We had a net loss of $3.9 million in the prior year period or a loss of $793.01 per basic and diluted share. For the full year 2025, we reported a net loss of $40.9 million or a loss of $1.85 per basic and diluted common share based on weighted average shares of $22.0 million compared to a net loss of $11.7 million or a loss of $3,282.26 per basic and diluted common share for the full year of 2024. At December 31, 2025, we had $7.3 million in cash and approximately $293.7 million of digital assets comprised of $217.7 million in digital intangible assets, $70.4 million in digital assets receivable and $5.6 million in digital assets fund investment. The combined total approximately $301 million. Total assets were $303 million and total shareholders -- $303.9 million and total shareholders' equity was $300.9 million at year-end.

With that, operator, let's now open the call up for questions.

[Operator Instructions]

Our first question will be coming from Fedor Sabelin of B. Riley.

I just have a couple of questions. First one is on ATM and buybacks. So beyond these 2 and the stake in yield compounding organically what incremental capital rising structures are you actively evaluating? Just maybe specifically SOL collateralized term lending beyond the Kamino facility or maybe structured equity products on the table? And how do you think about the accretion now for each relative to the dilution cost of the ATM at current levels?

Yes. Thanks, nor for the question. So we're thinking pretty broadly about what the capital markets opportunities are to us. We're trying to optimize for the lowest cost of capital that we can get. Clearly, when our stock is trading below 1x NAV, we think share buybacks are a pretty powerful tool to accrete value per share for our shareholders. and we have an outstanding share buyback program that we'll continue to pursue. At the same time, there are interesting ways where we can raise additional capital in a prudent way as so long as it is accretive, accretive to our shareholders, some of the options that are out there that we've seen some of our competitors do include things like convertible debt with high strike warrants or high strike -- with the high strike or high strike warrants, structured equity notes with -- where the common is being sold above NAV, potentially with additional kickers above NAV as well as preferred equity options.

We're evaluating all these. It really comes down to where we think we can have the best terms and where the market is. It does seem like that there is appetite to do things, but you guys will know when we actually do execute. We are going to be focused on to the extent that we are selling our volatility via warrants that we are selling volatility at a price that makes sense. And we do think there's a reasonable world where we can continue to excel our volatility and do so via either convertible debt or equity -- structured equity.

That's helpful. And my second one, Cosmo, probably for you again. In your press release, your odd references pursuing highly selective strategic capital market transactions to advance the company's objectives. Can you help me understand what highly selective actually means in practice. And so the company has already launched the Kamino Anchorage borrowing structure and the new recently announced specific backbone infrastructure initiatives. So that strategic capital markets transactions refer to new instruments like tokenized equity through super states opening Solana delineated convertible structures or potentially mergers with complementary debt vehicles.

And given that Solana Company's fully diluted share count moved a little bit by late March through warrant exercises and buyback, what is the internal hurdle rate or Solana per share accretion test transaction must clear before you would proceed in current environment?

This is Joseph Chee. Maybe I'll start with one point, and then I think you have kind of multiple questions in one question. I guess when we talk about highly selective strategy, it is like Cosmo, it's important that we raise capital at the right level so that would be -- it's accretive to -- for our shareholders. But at the same time, one important consideration that we bear in mind is also to bring in like high-quality strategic investors, not only the name on our share would mean something to the market would actually promote the credibility and reputation of the firm. Also, I think some of the strategic investors may work with us on some of the strategic business build-out or opportunities.

And there might be someone that is very close to the Solana ecosystem. I think part of this statement here when the highly selective strategic capital market transaction. It also means optimizing the shareholder register and bringing some of the good investors under register to help us grow and also to get them on to the Solana ecosystem. We're going to build out their businesses on the blockchain, right?

And then I guess, for the rest of the question, it talks about hurdle rates and things like that. I'll leave that to Cosmo.

Thanks, Fedor. Yes. But again, great question. I would say -- and I apologize -- apologies for this. It is dependent on what the market will give us. There's our controllables that we can control and then there's uncontrollables that are out of our hands. From a controllables perspective, I hope I can -- you can trust me when I say that we are aggressively looking at anything under the sun that is reasonable. Now all the options are out there. We're talking to existing investors that have been with us for a long time. We're talking to new investors who are looking at that -- who have been looking at that for a long time or even new investors that have not looked at that, but are looking for Solana exposure in an alpha-generative way.

And so we're talking to all these folks about what kinds of things make the most sense for them. There is a little bit of a -- when you talk about accretion, different structures can be accretive on different time horizons as well, right? Something that may be -- there are some transaction structures where it maybe looks a little less accretive near term, but it's actually very accretive long term, especially when you think about the strategic benefits that might bring to us, some of which Joseph Chee just mentioned.

I think the other color I would give you is that we are active repurchasers of our stock, and I'd say that is -- that continues to be an interesting avenue. If someone would do the math, they would be able to get to probably something like double-digit type accretion that we're targeting. That said, there's always opportunity to do things for less than that, with less accretion than that. I'm very proud to say that we are managing both the asset side of the balance sheet as well as the liability side of the balance sheet. The asset side, which means buying things well, finding opportunities to acquire Solana in interesting ways beyond just buying spot Solana and the liability side, all the capital markets transactions we've been talking about.

And in aggregate, in the 6 months since we started doing this, we're pretty -- it's pretty -- I would say it's pretty compelling that we've been able to grow Solana per share by 14%, all right, over 6 months. No, I'm definitely not saying that, that is what we will do going forward or necessarily that the market will present opportunities for us to do that. But at least like inception to date of this strategy, we're pretty happy about those results.

And our next question will be coming from the line of Matthew Galinko of Maxim Group.

You touched on the I guess, the DAT stake center and consolidation phase. I was hoping maybe you could go a little bit deeper into how you see that playing out? And over what time frame we might see consolidation, particularly in the SOL DAT?

Thank you, Matthew. It looks like you have -- I guess, your question is actually for Cosmo as well. Cosmo?

Yes. It's a great question. Look, I would say -- I wear a few hats. One is certainly as a Director of HSDT and the other is as an investor at Pantera Capital, where we've invested in many of these the DATs. And I think you realize that a lot of these DATs were formed not so long ago, right? This -- I'm realizing that now it's almost exactly the 1-year anniversary of when I decided to kick off investing in these digital asset treasuries and which really kicked off the boom in the DAT space. Almost exactly a year ago today. And so a lot of these companies and management teams have only been at it for at most a year, which was early on or more likely 3 to 6 months.

And so as you would expect, many of these people who came in with the right intentions I still believe they have the right to win. And so it's going to take some time for some management teams to realize they either are not going to make it or they need to throw in the towel. And so that takes some time for people to come to that realization. And so that's that's one thing to think about. The other is strategically, it has to be a good fit and culturally, you have to be a good fit. It takes 2 to tango ultimately with consolidation. To date, we've only seen one instance of DAT consolidation in the Bigpoint space. We haven't seen anything else. But I think it's -- and the easiest way to consolidate certainly Solana DAT to Solana DAT. But it is possible that we see acquisition opportunities of other assets. And certainly -- of other assets that could be accretive even if they're required by a Solana DAT. And so we're looking -- we're considering things pretty widely.

But it does take 2 to tango. It does take a management team that's willing to realize that the right path forward is consolidation. And then just as importantly, there is the concept of whether it's accretive enough and while the math is kind of tricky, while everyone trades below 1x NAV, there are ways to structure it, and we don't want to give away all the capital markets special sauce that we're working on. But there are interesting things that we can do. And so we're working through that. And hopefully, we -- hopefully, there's something to do eventually, but unfortunately, nothing to report today.

Great. That's super helpful. Appreciate it, and look forward to seeing where that goes. My follow-up question is just on, I guess, the cleanup on the model. Your SG&A was about $13 million in the fourth quarter. I'm just curious if that's a good number to use as the run rate on a GAAP basis in 2026? Or is that a little bit inflated for kind of the early stages of operating through the DAT launch?

Again, thank you for the questions. I think it's probably a question that our CFO, Jeff will answer.

Yes. Are you able to hear me? Okay. All right. We talked about was the noncash compensation expense that came in during the quarter. And then also, we had higher run rate for legal and professional fees as we were setting up this new business for us. So as we get moving forward, some of that should come out of our future costs. And obviously, it's going to somewhat fluctuate as we do some of the business, but I would say for the most part, fourth quarter was higher than what we achieved to expect.

And our next question will be coming from the line of Bill Papanastasiou of Chardan Capital Markets.

For the first one, I apologize if I missed this, but just a clarification. Is the Anchorage collaboration active today? And are you able to share how that's going in the early days? And what kind of institutions you're seeing the most demand from using this product? Or which one is your plan targeting first?

Bill, thanks for dialing in. So the increased partnership is still -- we're still working out the kinks. We're pretty excited to deploy, but we want to do so in a risk-managed way and in a way that -- in a risk-managed way that makes sense. We anticipate that being relatively soon, but it has not yet taken off. I would say that some of the most interesting opportunities that exist on Kamino today relate to some of their private credit yields or rather -- sorry, ready to their housing-backed financing opportunities, such as Prime, which yields in the 7% plus range. or some of the other stable coin yields, which are in the 6%-plus range. We believe we're able to borrow closer to 3% or 4% to be able to pursue those opportunities. And so that is a really interesting spread. Now we want to do so, again, in a risk managed and controlled way. But we do think that is available to us, and we feel pretty good about the capacity of those opportunities.

We do think that as the first ones to really do this, we anticipate that other people will want to follow and will likely follow in our footsteps. And we certainly welcome that for the growth of the Solana ecosystem. We're doing this as much for growing our actual yield that we can generate at Solana as well as to make sure that the underlying Solana token, which we believe in and are invested in also increases in value as we as we participate in the ecosystem and encourage others to participate.

Right now, we haven't seen a lot of other institutions start to deploy yet in Solana DeFi. I think a big piece of that is the regulatory clarity. People are looking for market structure legislation to pass in order to come in to DeFi in a much bigger way. But when we do, we believe the on-chain yields available to us on Solana could actually increase in addition to capacity increasing. And so we're pretty -- we are excited about that opportunity in the medium-term horizon.

Great. I appreciate that color. And then one last question, if I may. Kind of just a high-level one on the Solana ecosystem. Taking a step back and looking at the landscape, obviously, there's a lot of excitement with tokenization of real-world assets and bringing TradFi on chain. Perhaps you can just provide your view on where Solana sits in all of this and how you see competing with the other networks that are going after similar markets.

Cosmo, do you want to go first? I'll step in.

Bill, thank you so much for asking that. I mean as much as an investment in Solana Company is about investing in our management team's ability to execute against this plan and growth Solana per share in an effective way. The most important piece of that function is certainly Solana itself, the SOL itself and its value growth. And this really comes back to why we are so excited about pursuing a Solana based Digital Asset Treasury. And because one of the areas that we're seeing really fine product market fit right now across blockchain technology is this concept of real-world assets tokenization and everything that you can do with that when you put it into DeFi.

Solana is very well positioned because Solana has speed, low fees, broad retail and institutional distribution make it one of the most compelling networks for RWA tokenization. Solana is the #3 blockchain for RWAs with $1.7 billion on chain and the #2 network for tokenize stocks with over $260 million of value locked. According to Blockworks Research, Solana has facilitated almost 98% of tokenized equity spot volume by blockchain, showing that Solana is actually, while maybe the second or third place for a number of assets is actually the chain where assets actually move in or traded.

The top 3 contributors to Solana's RWA HCBL are BlackRock product, their tokenized treasuries, Prime, which is issued by bigger markets and asset-backed credit and on those U.S. treasuries. There is a growing roster of institutional partnerships already live on the network from Apollo Global and they're tokenized private credit fund to Janus Henderson and their 2 tokenized funds on Solana or VanEck Treasury Fund or Franklin Templeton's money market fund. And so we really look forward to seeing the continued traction from these asset issuers as well as new issuers and new products as the RWA tokenization market matures?

And Bill, I guess, just to add on to that, right? I think I've been asked that question many times when as we get the various functions and dinners and seminars, right? Like at the RWA that you get on to the chain, where is liquidity coming from? That's the biggest question mark for most people around the world. Let's say you have another $10 trillion of assets coming on chain, who's buying it? We think that a lot of this liquidity that we're buying this on-chain asset, we sort of accumulation of stable coins and crypto-based payment, mainly from cross-border payments. And a lot of that probably have to do with trade over time.

We did -- I mean in various functions, we did talk about this. I think as you could see that last year, the broad numbers, the stable coins payment is already hit something like over $30 trillion, right? And a lot of this I think over time, they will stay in the form of crypto instead of turning back to PR. And if you think about Solana, especially if you think about the export and cross-border trade, a big part of it has to do with Asia, China being one of them, the market that's very export led. And as you know, all for all these cost-border trading companies, manufacturing companies, speed uncertainty, lowering the FX risk is important, but cost is also very important.

And then if you see all that sort of point towards Solana. That's why we're also spending quite a bit of work in different parts of Asia, especially there are a lot of import/export trade and a lot of cross-border payments. We believe that Solana probably will be one on the main blockchain if not the blockchain to use for a lot of these cross-border payments.

And I would now like to turn the call back to Joseph Chee for closing remarks.

Thank you. Thank you all for joining Solana Company's Fourth Quarter 2025 Operating Results Update, and thanks for all the good questions. We are pleased by the progress we have made this year and look forward to sharing further updates next quarter. Operator, I guess it's time to close the call.

Thank you. This does concludes today's program. Thank you for participating. You may now disconnect.

Hello, and thank you for standing by. Welcome to Solana Company's Third Quarter Operating Results Conference Call. [Operator Instructions] I would now like to hand the conference over to Sarina Jassy, Investor Relations. You may begin.

Thank you, operator. Before we begin, I would like to inform you that comments and responses to your questions during today's call reflect management's views as of today, November 18, 2025, only, and will 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 earlier today and in the section entitled Risk Factors annual report on Form 10-K filed with the United States Securities and Exchange Commission or the SEC, on March 25, 2025, and in other 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 that this conference call will be available for audio replay on our website under the News and Events section of our Investor Relations page.

With that, I would now like to turn the call over to Solana Company's Executive Chairman, Joseph Chee.

Thank you. Good morning, everyone, and welcome to our first earnings call since that we successfully raised over $500 million to fund our digital asset treasury strategy in September. I'm Joseph Chee, the Executive Chairman of Solana Company. I'm honored and pleased to be able to work with the capable Board of Directors and executive team closely since my appointment.

Additionally, since 2017, I have served as the Founder and Chairman of Summer Capital, one of the earliest licensed funds in Asia that invest in crypto blockchain sector, one of the cosponsor for the PIPE transaction and now 1 of the 2 strategic advisers to Solana Company. The Solana digital treasury strategy and the PIPE transaction marked a new beginning for Solana Company and its shareholders. Pantera and Summer are committed to providing strategic support to accelerate the growth of the company going forward. The USD 120 million investment by Pantera, is the single largest cash investment in Pantera history. Pantera, together with Summer Capital and its ecosystem partners, accounted for roughly half of the total capital raised, underscoring their conviction in Solana Company's strategy and long-term potential and the company's commitment to deliver results.

I believe the background experience that Pantera and Summer give HSDT both global reach and institutional credibility. Since the closing of the PIPE transaction, we are now squarely focused on executing our digital asset treasury strategy. We aim to incorporate all of the learnings from our strategic investors about what has worked well and what hasn't worked to really hone the plan. As we look forward, there are 3 pillars of execution we are focused on; advocacy, capital markets and treasury management.

First, let's talk about advocacy. Our goal is to maximize shareholder value, and we believe we can do so through maximizing Solana per share accumulation. One key underlying assumption there is that Solana itself is worthy of investment. Therefore, our #1 job is advocating for Solana or telling the Solana story to help investors understand why Solana is a compelling asset. Solana has become the most widely adopted and financially productive blockchain in the world. It now processes close to 80 million transactions per day with a median fee below [ 1.1 ] and provides a native staking yield of more than 7%. That combination of throughput, portability and productivity is why we believe Solana is the only blockchain that is both economically sustainable and institutionally relevant.

We see that in the numbers. Solana is #1 chain in decentralized exchange volumes, the leading platform for stable coin payments through integration with PayPal and Stripe and one of the fastest-growing ecosystem for real-world asset tokenization with activities from firms like BlackRock, Franklin Templeton, and Apollo. It is definitely one of the most secure and decentralized blockchains built for institutional adoption. Our focus at HSDT has been on advocating for why Solana matters, not only to the crypto native community, but also to Main Street and traditional financial institutions globally.

We believe this broader audience will ultimately determine which assets are relevant. As part of the effort, we have been proactive in reaching outside of crypto echo chamber and bringing Solana story to the institutional world. Since our launch, HSDT has already appeared more than 10x on main media such as CNBC and Bloomberg, helping bridge the conversation between traditional equity investors and the Solana ecosystem. Our advisor, Dan Morehead; my partner, Cosmo Jiang; and myself have been actively participating in media interviews, podcasts, relevant conferences and events to promote Solana Company and its underlying assets sold not only in the U.S. and U.K., but also in Asia and the Middle East.

We and the Solana Company were featured in many local print and digital press in the regions mentioned. Each of this opportunity reinforces our central message. Solana's speed, cost efficiency and real-world adoption make it one of the most credible and investable assets in our industry worldwide. Since we are the designated DAT to support Solana Foundation APAC region, we have traveled with the Solana Foundation, senior management to Beijing, Shanghai, Hangzhou, Shenzhen, Hong Kong, and Singapore in the last 2 months by organizing, attending multiple conferences, panels gathering intensively over a few weeks, we have managed to reach out to thousands of people, including developers, investors, universities, research institutions, regulators, industry partners, including major tech companies to advocate for Solana blockchain as an ecosystem.

The enthusiastic participation in all location and the conversation we had with the local communities may realize that Asia is probably the single largest underpenetrated market with highest potential for Solana. We believe it also has the largest population of keen users, developers, tech companies, entrepreneurs ready to embrace the high-performance Solana blockchain. This outreach is translating into results. Trading volume in HSDT has meaningfully outperformed the average of peer VATs, including other Solana VATs, reflecting a growing awareness of Solana's fundamentals and confidence in the DAT model. We view this as an early indicator that our advocacy strategy is working and investors are starting to view HSDT as the public gateway to Solana.

As we committed to the investors during the fundraising process for the PIPE transaction, we have been focused on running the business with best market practices and the highest level of governance, diligence and care. Cosmo will go through the outstanding results we achieved with the instantaneous activation of the ATM for fundraising, the tactical approach to Solana accumulation and the rigor and discipline we apply to staking. We believe Pantera as the asset manager has delivered stellar results all around since we started with the new strategy.

Just to reiterate, we are attempting to build the Berkshire Hathaway of the Solana ecosystem that compounds shareholder value and trades at a premium with a strong balance sheet, a clear strategy and the expertise of a team that's experienced with DATs and its shareholder aligned with meaningful ownership.

With that, I will turn it over to Cosmo to elaborate more on our strategy in capital markets and treasury management and take a closer look at our third quarter financials.

Thank you, Joseph. I'm Cosmos Jiang, a Director for Solana Company and General Partner at Pantera Capital. Pantera brings deep experience as a digital asset specialist investment firm. Pantera was the first blockchain dedicated institutional investment firm starting in 2013. Pantera anchored the first deals that catalyzed the digital asset treasury boom earlier this year, including pointing the term [ DAT or DAT], and as such, have unmatched experience in digital asset treasuries as well as the U.S. capital markets broadly.

I will now discuss the market environment and our launch progress. Now let me take a step back. It is important to acknowledge the broader market backdrop. Over the past several months, the digital asset treasury market has cooled after a period of rapid expansion earlier in the year. That is not unexpected. From an investor's lens, when I think back to what I mapped out as the white space roughly 6 months ago, now in our view, much of that white space has been taken. We just witnessed the creation of a whole new category of businesses over the last 7 months and the creation of a new category can only happen once. I believe this initial genesis phase of new DATs being launched is now largely over.

Now that we see the white space as largely taken, we believe the industry is entering the execution and consolidation phase. The barriers to entry are a lot higher now for new entrants. Most debts will be outcompeted and have uninteresting outcomes, ultimately resulting in healthy industry consolidation. We, at Solana Company anticipate that this will be where the strongest DATs will prove themselves out and win out through operational excellence and capital discipline. We believe the best DATs can be amazing long-term outcomes for both shareholders and token holders, those with credible management teams, transparent reporting and durable token per share growth.

We believe we have the ingredients to do so here at Solana Company. Our balance sheet strength, institutional sponsorship and operational focus give us the foundation to continue building even in a more selective environment. As part of the company's continued commitment to maximize SOL per share through disciplined execution of its digital asset treasury strategy, including capital deployment, active on chain management and transparent reporting. Solana Company has increased its holdings of SOL by roughly $100,000 or $0.1 million in the first month of operation to a total of over 2.3 million tokens. The company also still holds $9.8 million of cash and stablecoins, which it intends to use to further the digital asset treasury.

For the month of October, the company's average gross staking yield was 7.03% APY. This performance was approximately 36 basis points better than the 6.67% APY stake weighted average of the top 10 largest validators over the same period. Solana Company's sole holdings are primarily staked through institutional-grade validator infrastructure with rewards automatically restaked to compound returns. This staking yield translates to consistent daily on-chain revenue generation while preserving full liquidity and custody of underlying assets.

Let me elaborate on the next 2 of our execution pillars, capital markets and treasury management. Capital market strategy is one of our pillars for execution, a driver of Solana per share growth. The objective is straightforward to maximize tokens per share through disciplined capital formation and balance sheet management. We are focused on ensuring that every financing decision, whether equity or equity-linked, is structured to be accretive, meaning it increases the number of SOL per share for our existing shareholders. As mentioned earlier, we have launched our ATM program and recently also announced a share buyback. The ATM is an important tool for a DAT and allows us to access liquidity continuously and in efficient spreads rather than relying on episodic and uncertain capital raises.

The buyback is an important complement. Whether we are trading at a premium or a discount to [ mNAV ], we now have the flexibility to act in ways that maximize Solana per share growth. When we trade above our NAV, the ATM allows us to issue accretively. When we trade below NAV, we can use other tools such as share buybacks. Beyond that, we are evaluating structured equity transactions, including convertible debt and warrant-linked financings that could provide flexible non-dilutive growth capital while monetizing Solana's inherent volatility.

Finally, we are open to participating in M&A within the DAT ecosystem. As we move from the launch phase of the market into the execution phase, we believe consolidation will naturally occur. HSDT is well positioned to be an acquirer where it makes strategic sense, particularly in cases where smaller DATs trade below 1x mNAV and can be integrated accretively.

Next is treasury management. As the asset manager, Pantera's expertise is really helpful here. That experience is already reflected in our execution. On our Solana purchases, we have been deliberate and data-driven. Our average cost basis is approximately $220 per SOL compared to about $240 at launch, representing roughly a 10% improvement versus the passive approach. On the validator side, we've also been disciplined in how we stake. In October, as mentioned above, we outperformed our peers, and that comes from careful validator selection, MEV capture and continuous rebalancing. We believe that is a meaningful amount of outperformance versus what any individual investor may be able to achieve and even many other publicly traded Solana DATs.

Looking ahead, DeFi yield opportunities are on our roadmap, but only where we can identify risk-adjusted returns that make sense. We are carefully evaluating counterparty, smart contract and regulatory risks before deployment. The goal is not to chase yield. It is to grow tokens per share in a sustainable risk-controlled way. We believe through this approach of disciplined accumulation, active validator management and selective yield enhancement, we are building a treasury that compounds value per share, not just one that holds tokens passively.

I would now like to turn the call over to Dane Andreeff for updates on the company's legacy business, its orally applied technology platform.

Thank you, Cosmo. At its core, the company was founded as a neurotechnology company dedicated to addressing neurologic deficits through its innovative orally applied technology platform. This proprietary platform enhances the brain's ability to activate physiologic compensatory mechanisms and promote neuroplasticity, improving the lives of individuals with neurological conditions.

The company's first commercial product, the Portable Neuromodulation Stimulator or PoNS exemplifies its mission to advance neuro rehab through science and technology. The company had some exciting progress over the past quarter, both clinically and strategically. The PoNS stroke registration program study was successfully executed, resulting in positive clinical outcomes. The successful results of the Stroke Registrational Program supported our PoNS device submission for FDA 510(k) designation filed under its current FDA breakthrough device designation. Statistical analysis for the functional gait assessment primary endpoints demonstrated PoNS superior effectiveness in improving gait deficit by achieving a clinically meaningful mean improvement compared to the control group, reflecting the clinical significance of this therapeutic intervention.

In the third quarter, we have seen increased U.S. activity, including increased VA and cash sales. This has been supplemented by additional out-of-network third-party reimbursements. We are happy with the progress made at Helius this quarter and would like to reiterate our excitement that this strategic evolution represents Helius' next chapter as Solana Company. By aligning its corporate strategy with the Solana Foundation and the broader Solana community, Solana Company positions itself at the intersection of breakthrough neuroscience and digital asset innovation, uniting 2 powerful platforms for sustainable growth and technological progress. I'm excited for the future of Solana Company.

Now I would like to turn the call over to Jeff to cover the financial results.

Thank you, Dane. Our financial results include the $500-plus million PIPE transaction that closed on September 18, 2025, and related DAT activities from that date through the end of the quarter. Our third quarter revenue of $697,000 included first-time staking rewards income of $342,000, comprising the majority of the increase from the prior year period. For the third quarter, cost of revenue was $103,000 compared to $187,000 for the prior year period, mainly due to decreased inventory reserve and production scrap expenses. Selling, general and administrative expenses for the third quarter of 2025 were $4.6 million compared to the $2.9 million reported in the third quarter of 2024, with the increase comprised of a $1.5 million discretionary bonus in the current year.

Research and development expenses for the third quarter of 2025 were $0.9 million compared to $1.1 million in the third quarter of 2024, driven primarily by reduced clinical trial activities. Unrealized loss on digital assets of $30.5 million resulted from the net change in fair value of digital assets held by the company as of quarter end. Total operating expenses for the third quarter of 2025 were $36 million compared to $3.9 million in the third quarter of 2024. The resulting loss from operations for the third quarter of 2025 was $35.5 million compared to a loss of $4.1 million for the prior year period.

Current year nonoperating loss in the third quarter of $317.3 million included a $545.7 million loss on derivative liability attributable to the valuation of the stapled warrants from the September PIPE transaction and $194.7 million of financing costs from the September PIPE transaction, including a $171.3 million noncash charge from the advisory warrants issued and an $8.6 million noncash charge for shares issued to Clear Street, offset by a $423.3 million gain from the change in fair value of the derivative -- related derivative liability from those stapled warrants as of September 30, 2025.

We reported a net loss for the third quarter of 2025 of $352.8 million or a loss of $32.89 per share. We had a net loss of $3.7 million in the prior year period or a loss of $744.35 per basic and diluted common share. At September 30, 2025, we had $124 million in cash and $350.2 million of digital assets at fair value for a combined total of $474.2 million. Also at that date, we had a combined total of 75.9 million common shares and prefunded warrants outstanding.

Finally, as of November 17, 2025, certain provisions of the 2025 stapled warrants related to adjustments of the Black-Scholes inputs in determining the warrant value in the event of a fundamental transaction were amended.

I'll now hand it over to the operator for questions.

[Operator Instructions] I'm showing no questions in the queue. I would now like to turn the call back over to Jose for closing remarks.

Well, thank you all for joining the Solana Company third quarter operating results update. We are pleased by the strategic change and progress we have made this quarter and look forward to sharing further updates next quarter. Thank you.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.