Solana Company's operating results for the second quarter of 2026 ended June 30, 2026, the second quarter of 2026. Earnings press release was issued today, August 14, at approximately 425 Eastern time and is available on the investor relations section of Solana Company's website. Joining us today are Joseph Chee, Chairman and Chief Executive Officer, Cosmo Jiang, Director of Solana Company and General Partner at Pantera Capital, and Madeline Guiani, Chief Financial Officer. All participants are in a listen-only mode. Following the management's prepared remarks, we will open the call for questions. To ask a question, please press star followed by star 11 on your telephone. Today's call is being recorded. I would now like to turn the call over to Jake Maracus with M Group Strategic Communications for introductory remarks. Please go ahead, sir.

Thank you, Operator. Before we begin, I'd like to inform you that comments and responses to questions during today's call reflect management's views as of today, August 14, 2026 only, and include forward-looking statements and opinion statements, including predictions, estimates, plans, expectations, and other similar information. Actual results may differ materially from those expressed or implied as a result of certain risks and uncertainties. These risks and uncertainties are more fully described in our press release issued today and in the sections entitled Risk Factors in our annual report on Form 10-K filed with the United States Securities and Exchange Commission for the SEC on June 30, 2026, as well as in subsequent filings with the SEC. Our SEC filings can be found on our website or on the SEC's website. Investors are cautioned not to place undue reliance on forward-looking statements. We disclaim any obligation to update or revise these forward-looking statements. Please note this conference call will be available for audio replay on our website under the News and Events section of our Investor Relations page. With that, I would now like to turn the call over to Solana Company's Chairman and Chief Executive Officer, Joseph Chee.

Good afternoon, everyone, and welcome to Solana Company's second quarter 2026 earnings call. On our first quarter call, I detail a multifaceted digital asset treasury platform and flywheel strategy for the first time. advisory, validated infrastructure, staking and treasury, each designed to strengthen the others and diversify the solar company's revenue sources. Today, I'm pleased to report on the progress of this build-out. Our first institutional validated cluster is operational in Tokyo. We secure our first third-party state commitment of around half a million soles in July and expect to report the results in the third quarter of 2026. We also addressed the legacy elements of the business by divesting the cash-consuming medical device business. We swapped the legacy business unit out with the acquisition of a Hong Kong regulated trust company, a profitable enterprise that allows us to better realise the financial focus of our new operating model. The assets in our treasury also continue to generate value. Staking rewards contributed to 2.5 million or 31.2 thousand sold in the second quarter. So we did not have to buy and did not have to raise capital to acquire. Every one of those actions serve a single purpose, to generate momentum behind the flywheel to feel the advancement and development of our core business lines. We are not only holding Seoul as an asset, we are helping to build the infrastructure that Asia-Pacific institutions need in order to use it and we are doing that as a trusted partner of the Solana Foundation to help drive institutional adoption for realization of internet capital market vision. Asia-Pacific accounts for the majority of the world's crypto users and a substantial share of global cross-border payment volume, yet it remains significantly underserved by Solana's existing validated footprint. We believe a passive vehicle like an ETF cannot capture adequately the opportunity that comes with offering our own Solana infrastructure and advisory services to institutional market participants. Our flywheel of treasury validated infrastructure and advisory is designed so that each pillar makes the others stronger and so that every turn adds soul per share. I want to spend a moment on the state of Solana network as internet capital markets and Solana's continued institutional adoption given it has significant impact on our business growth. The second quarter saw accelerated growth in two areas that are directly relevant to our business first solana's on-chain real world asset market reached a new all-time high of 3.62 billion at the end of june as tokenization spreads across financial markets institutions are choosing solana for distribution in fact five or nearly 30 global systemically globally systemically important banks have already announced partnership with or that leverage the solana blockchain second tokenized equities on Solana generated $4.8 billion in trading volume during the second quarter, up from $1.1 billion in the first quarter. Monthly volume rose from $670 million in April to $871 million in May, before reaching $3.3 billion in June alone. As of late July 2026, 97% of all on-chain tokenized equities spot volume to date had settle on Solana, which underscores its position as the leading infrastructure for institutional tokenized securities. The institutional demand for tokenized assets on Solana is real. It is accelerating and is arriving in parallel with our build-out over the past two quarters. We would like to reiterate our conviction in the Solana ecosystem. We believe Solana company is the accountable, listed counterparty those insuring can actually transact with and that's what the second quarter was spent making possible. Before I turn to our operating businesses, I want to highlight the additions we made to our team and our board because our talent is our greatest asset. Bringing on leading Web3 native talent is what allows us to scale effectively and to execute at the highest level. On our first quarter call, we welcome Madeline Ghani as the Chief Financial Officer and Chief Operating Officer. Madeline brings experience with Ernst & Young, Gemini, Juul, Hedera, Aptros, etc. And one quarter in, her impact is evident in the rigor of our reporting and in the build-up of our core business lines. In March, we welcomed Teddy Hong as Head of Business Development Advisory. Teddy joined us from Boston Consulting Group, where he partnered with financial institutions and regulators on digital asset money, following roles at JP Morgan and Oliver Wyman. Since 22, He had published on digital money, stablecoin, tokenized deposit and CBDC, and on tokenization including tokenized funds and institutional DeFi. He leads our institutional engagement with financial institutions and strategic partners and is the driving force behind the advisory pipeline I will come to in a moment. We also strengthened our board of directors. On April 23rd, the board increased its size from seven to nine members and appointed Michelle Lee and Sergio Mello as directors to fill in the newly created positions. Michelle is a co-founder, an investment partner at Cybertech Partners, and a co-founder at Hashkey Group, now a Hong Kong-listed company which owns one of the largest licensed crypto exchanges in asia and the largest blockchain technology investment fund measure company in asia he also brings with him 125 years experience in traditional capital markets in particular in multiple roles as product structure originator and risk manager across hong kong beijing tokyo and london sergio is global head of stablecoin solutions at anchorage digital where he leads business development, and platform offerings for stablecoins. He previously founded Largo Finance, a consortium of financial institutions built to improve settlement using tokenized cash. Last quarter, I outlined our diversified revenue engine comprised of three integrated service lines designed to serve institutional demand in one of the fastest growing digital asset regions in the world, Asia-Pacific, and I will touch on each service line every quarter. Advisor services. We provide bespoke advisory to traditional financial institutions and corporates, helping to unlock tangible business value through blockchain adoption. On our first quarterly call, I said we expected this initiative to contribute meaningfully to revenue this year. We maintained that view the second quarter was spent building the foundation for debt revenue our team delivered 15 institutional education sessions and advisory workshops with banks as the managers and exchanges across Asia Pacific developing a pipeline of durable recurrence relationship is a crucial step in generating revenue and that work is now converting we are in negotiations with a third party and we expect to finalize terms in due course in this phase advisory is doing two jobs it will generate revenue over time and just as importantly it is our demand generation engine because the institution that asks us how to adopt solana is the institution that will later need an institutional grade validator for the operation we are being engaged as a trusted growth partner rather than just a vendor validated infrastructure pacific backbone is a branded compliant high performance infrastructure that regulated institutions require in order to scale taking and validation on solana last quarter we said our validated notes would be operational in late June, and our first validated cluster came online early July after intensive assessment. We now have three machines running in Tokyo, which altogether constitute one validated cluster which provides us with redundancy and an independent test environment ahead of any deployment. With institutional standards as North Star, initial deployments carry a high redundancy ratio by design and that ratio is expected to decline as we add operating validators and build operating history. Beyond Tokyo, we are working on additional validators in APAC to address growing demand per plan, and we plan to launch over the course of the year as favorable conditions arise. Now to third party delegated state. We have secured commitment of external third party of around half a million sold as of this earnings call, and we expect to report our revenue from the validated business in the third quarter, 2026. This is our first institutional client stake and we believe it is proof point that matters most because it demonstrates that the established counterparty will move real-size onto infrastructure operated by a name listed entity. We differentiate ourselves through stability, compliance and transparency beyond simply headline yield. We are pursuing ISO 27001 and SOC 2 certification to further strengthen this differentiation. Platform business. Our AI-powered orchestration and compliance stack is a long-term build and we continue to develop deliberately. When complete, the platform is expected to be the combination of our staking, validator, and advisory lines, giving partners a single source of execution across their digital asset operations. These initiatives sit on a multi-year trajectory and we expect the operational impact to continue building throughout this fiscal year. Together, these three service lines create the flywheel I highlighted last quarter. The reason that the whole is worth more than the sum of the parts is that these businesses feed one another. Advisory work identifies where institutions need infrastructure as we support their utilization of SANA for their business growth. Infrastructure generates recurring non-NAB feed revenue. That revenue recycles into sole accumulation. And a larger, better-run treasury makes us a more credible counterparty for the next advisory mandate. This design was reinforced this quarter by two partnerships. In May, we announced a strategic partnership with the JITO Foundation to expand institutional-grade Solana infrastructure throughout Asia Pacific. By combining JITO's market layer technology with Pacific backbone, the partnership supports the deployment of high-performance validators and the development of institutional staking solutions tailored to regulated financial institutions asset managers. As demand for institutional staking and validated infrastructure continues to grow across the region, this partnership is expected to strengthen the foundation supporting financial institutions building on Solana. It is also already contributing measurable yield to our treasury, which Cosmo will quantify later. In June, Solana Company announced a partnership with Alataw City, Kazakhstan's future-oriented city to collaborate on blockchain infrastructure, enterprise adoption, education, research, and policy development. Throughout this partnership, we aim to support the development of blockchain infrastructure while expanding opportunities for enterprise adoption is one of the region's fastest-growing digital asset hubs. Atatau is a clear illustration of how our offerings opened doors that a pure digital treasury company alone would not because we are being engaged at the level of policy and infrastructure design, not simply as a hazard holder. The second quarter also marked the continued transition towards our core business operations. The divestiture of the PONS medical device business was finalized on April 8, 2026. This was disclosed in our first quarter Form 10Q, but bears repeating. Madeline will take you through the financials, but the key takeaway is that we have exited a cash-consuming non-core operation, removing its ongoing costs from the business, and we now report as a focused digital asset treasury and infrastructure company. On March 17, we acquired a Hong Kong-based trust company, and the transaction closed on July 15. Total consideration was $2 million in the combination of 50% payable in cash, 50% payable via stock issuance. Hong Kong is the primary focus for our operations. Here, we believe the institutions we service do not simply need performance infrastructure. They need a license in-region named counterparty they are permitted to transact with. With that, let me hand the call over to Cosmo to walk through our treasury and capital markets results. Cosmo?

Thanks, Joseph. Hello, everyone. I'm Cosmo Jiang, a director of Solana Company and a 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. Last quarter, I've been describing the digital asset treasury market as having moved from the genesis phase into the execution consolidation phase this has advanced that further this quarter the gap between operators is widened and capital is concentrating around the vehicles that combine institutional grade infrastructure transparent reporting and discipline capital management execution has surpassed scale as the key differentiator for us sold declined approximately 12 during the second quarter following a decline of approximately 33 in the first quarter against that backdrop our strategy did not change. Gross sold per share through accretive capital allocation, generate staking yield above the network average, and build the operating businesses that produce revenue independent of sole price. Staking remains one of the most important and most differentiated aspects of our business. The measure report is net staking yield, by which we mean the annualized yield we realize on our stake sole after validator commissions and related operating costs compared against the Solana Network's system-wide average over the same period. For the second quarter of 2026, our average net staking yield was 6.14% APY. That compares with a network average of approximately 5.68% APY, representing outperformance of 46 basis points. That yield is generated through careful validator selection, active MEV capture, and continuous rebalancing, which is the same institutional approach Pantera applies across its broader digital asset portfolio. Staking rewards are automatically restaked to compound returns, producing consistent daily on-chain revenue. Now, turning to capital markets. We remain committed to capital allocation that is accretive on a sold-for-share basis in any market condition. With our stock trading at a discount to net asset value during the quarter, we executed approximately $2.3 million of share repurchases, retiring 1.3 million shares, and year-to-date repurchases now total approximately $5.9 million as reflected in our treasury stock position. On the issuance side, on April 24th, we completed a strategic institutional round of approximately $8 million led by Mirai Asset with participation from Ashkeet Capital. Mirai is one of the largest asset managers and financial conglomerates in Asia, and the participation of both firms reflects the depth of institutional conviction in this strategy and in the region the company serves.

On MNAV, at quarter N, we stood at approximately 0.81 times up from 0.73 times in the first quarter.

At that level, the creative action is repurchase rather than issuance, and that is where we lean into this quarter as we expect to continue to lean in while the discount persists. The ability to operate optimistically on both sides of the capital structure, issuing at a premium and repurchasing at a discount is a powerful mechanism for creating shareholder value across different market environments. As of June 30th, 2026, Solana Company held approximately 2.3 million sold across all categories, including liquid holdings, state positions, and receivables, with a fair value of approximately 170.6 million. Our in-the-money diluted share count was approximately 85.4 million shares, comprising 60.5 million common shares, 24.9 million in-the-money warrants, and 21,000 RICUs. I will now turn the call over to Madeline Gennie, our Chief Financial Officer, for the detailed financial results.

Thank you, Cosmo. Second quarter revenue was 2.5 million, consisting of 2.5 million of staking revenue and 14,000 of other revenue. This compares with 43,000 in the second quarter of 2025, which did not include contributions from the staking revenue attributable to our treasury strategy. For the first six months of 2026, revenue was 6.1 million, comprising a 5.9 million of staking revenue and 0.2 million of other revenue, compared with 92,000 in the prior year period. Cost of revenue for the second quarter was $0.1 million, resulting in gross profit of $2.4 million, a gross margin of approximately 97%. For the first six months, cost of revenue was $0.3 million, and gross margin was $5.9 million. This compares with $0.2 million of cost of revenue and $0.1 million of gross loss in the prior year period. General and administrative expenses for the second quarter of 2026 were 11.1 million compared with 3.3 million in the second quarter of 2025 and 16.3 million for the first six months. The increase reflects the expansion of operations associated with our digital asset treasury and infrastructure strategy, together with the 6.8 million of severance associated with the PONS divestiture. Of the 11.1 million recorded this quarter, approximately 6.8 million relates to non-recurring items, with the remainder being the digital asset treasury operating expense. Roughly 63,000 of that is non-cash stock-based compensation. Looking forward, we expect general and administrative expenses to decline and normalize with the return of q1 levels as the pond's cart basis comes out in full and as we continue to cautiously invest in the validator and advisory businesses turning to digital asset fair value movements during the quarter we recorded an unrealized gain on digital assets and digital asset receivables of 2.4 million a realized loss on digital assets of 25.4 million related to strategic sales executed as part of our capital allocation program and an unrealized loss of our digital asset fund investment of 0.3 million for the first six months those figures were an unrealized loss of 86.8 million and realized lost of $32.4 million and a fund investment loss of $2 million. It is important to know that these fair value movements are non-cash in accordance with U.S. generally accepted accounting principles. They do not affect our cash balance, the tokens earned from staking activities, or the quantity of soil we hold. Net operating expenses for the second quarter were $35.1 million compared with 3.3 million net operating in the prior year period and 138.2 million for the first six months of 2026. The resulting loss from operations was 32.7 million compared with 3.3 million in the prior year period and 132.3 million for the first six months. Non-operating income net was $2.4 million for the quarter. This includes the $3.1 million gain on the sale of the pond business, a change in fair value of our derivative liability of $0.3 million, and other expense of $0.3 million, which relates primarily to the foreign exchange loss due to fluctuations in the Canadian to U.S. dollar exchange rates. We reported a net loss for the second quarter of 2026 of $30.3 million or .38 cents per basic and diluted common share based on weighted average shares outstanding of $79.8 million. For the first six months of 2026, our net loss was $130.1 million or $1.66 per share on weighted average shares of 78.3 million this compares with the net loss of 9.8 million in the second quarter of 2025. turning over to the balance sheet as of june 30th 2026 we had total assets of 176.1 million including 3.6 million of cash and cash equivalents 23.3 million of current digital assets, and $147.3 million of long-term digital assets and digital asset exposure across stake positions, restricted assets, receivables, and fund investments. Total liabilities was $6.4 million, including a derivative liability of $4.2 million, and total stockholders and mezzanine equity was $169.7 million. Finally, during the quarter, we repurchased 1.3 million shares of approximately 2.3 million under our previously authorized stock repurchase program. As of June 30th, Treasury stocks stood at 5.9 million, representing 2.9 million shares at cost, compared with 3.5 million and 1.6 million shares at March 31st. One subsequent event to note, on July 15, after the close of the quarter, we completed the acquisition of the Hong Kong Trust Company for total considerations of $2 million. This transaction will be reflected in our third quarter results and is disclosed in the subsequent events note to our Form 10-Q. I will now hand it back to Joseph for closing remarks.

Thank you, Madeline. And thank you all for joining Solar Company's second quarter 226 operating results update. I opened by saying that last quarter I set out the flywheel, and this quarter we've reinforced it, and that's what I want to leave you with. A validated cluster live in Tokyo, our first institutional stake secured, our first advisory engagement committed and acquired trust company in hong kong and the legacy business behind us the fire wheel now is gaining momentum moving into our next quarter management will continue to proactively manage our sole treasury holdings to optimize yield while maintaining rigorous risk oversight we plan to drive ongoing optimization of human capital footprint and cost base paired with strict financial discipline across both operating spend and capital deployment. Three priorities will define our next quarter. First, we plan to scale the civic backbone beyond the current life cluster, inaugural client sole stake to build out a larger third party book, transforming our infrastructure into recurring fee-based revenue streams. This is expected to include the recognition of our first validated-related rewards during the third quarter. Second, we plan to convert our advisory pipeline into executed engagements and recognized revenue while continuing to pursue opportunities to expand and diversify our overall revenue base. Third, we plan to continue to execute our capital allocation strategy. with our shares trading at below net asset value we plan to focus on enhancing the amount of sold backing each outstanding share we look forward to updating shareholders on operational progress in the quarters ahead operator please open the call for questions certainly ladies and gentlemen if you do have a question at this time please press star 1 1 on your telephone and our Our first question for today comes from the line of vendor Shabalan from V-Riley.

Your question, please.

Thank you very much, operator, and good afternoon and good time of day, everyone. My first one is on Pacific Backbone monetization and moat in general. So beyond the Tokyo cluster, what's the revenue model once Cheetah's market layer tech is integrated? Is this a fee share or MAV capture arrangement? And what's the realistic timeline for this project to move from cost center to revenue contributor? Thank you.

This is Joseph. Good afternoon. Good to hear from you again. I guess this is no different from other validators that have JITO as a partner. We're doing a basic thing at the moment, generating, just trying to optimize the performance to get to slightly above average versus the market. And by the way, I would think that this is not a cost center. I think almost immediately after launch, we already secured third-party soul into it, and you will see the revenue coming through. I would think that this is actually going to be profitable for this year. But again, we have to wait for the results for the coming quarter. That's my expectation. And we continue to win more third-party soul to be a stake at the relative cluster that we have. I think you'll hear more good news on new validators being launched as well in the coming Thank you, Joseph.

And follow up on the same topic, what would you expect regarding revenue impact on top of what you have now in third quarter, just to the extent you can share now?

I don't think we have the numbers available and probably this is not the right place to give a forecast of this sort. I think at the moment, we do expect revenue to come through and we are trying to build more, you know, soul into our validator that at this stage would do quite a bit of work.

Hopefully at the right time, we'll be able to give you some guidance thank you uh and if you allow me the last one on capital allocation it's a nice job in second quarter with buybacks um obviously creative at current relations uh if you can just frame your work near term what we should expect uh uh from capital allocation perspective in 3q maybe 4q just for the balance of the year thank you uh thank you for the question uh cosmo do you to take this yeah i have to do ahead uh look i think we're gonna we're gonna keep that seeking

in the plan that we've laid out which is try to maximize our solana per share accretion every uh every day to the best that the market will give us you know at this at this very moment and over the last quarter we've traded at a discount to nav and when uh when that happens we are happy to buy back our uh to buy back stock when we do that that is a creative on a sole prepared basis for the company and so uh you know we're creating value on the on the flip side we found that there's been tremendous strategic interest from large corporates uh in in especially in asia pacific that have an interest in learning about solana and engaging with solana and so whether we're engaging with them um on a staking basis or on a or on a capital basis and welcoming them as investors, we found that there are ways to create value and that, you know, certainly this past quarter, we had the great fortune of bringing on Mirai Asset in a very creative transaction for our investors as well. And so we'll continue to find that. And as the markets rebound, we would expect that our capital market activity would rebound That's clear.

Thank you very much, Joseph and Cosma, and continue our best of luck.

Thank you. And our next question comes from the line of Matthew Kalinko from Maxim Group. Your question, please.

Hi, good afternoon. Thanks for taking my question. Maybe just to lean a little bit more into the treasury operations, you know, to the extent that you begin generating, you know, cash flow or material cash flow from the operating businesses that you're building and scaling, how do you think about, you know, if you're below MNAV, you know, do you see putting incremental capital into the buyback from the operating business? or would you look to allocate back into the operating business from the operating business cash flow? Just curious how, you know, as you sort of have more levers, you'll look to deploy them.

Well, on capital allocation, regardless of where the revenue comes from, we do think about it as, you know, as a total allocation approach once we understand what resources we have, whether that's through the staking yield, through our potential DeFi engagement, or through some of this non-sold denominated revenue. We'll find that, pay for the expenses that are required to keep the business going and growing. And then if the highest and best use of our capital happens to be buybacks at that time because of where we are trading, we'll do that. And if it happens to be buying Solana because we're trading at a premium, then we'll do that. The end goal is always maximizing Solana per share. regardless of where the revenue comes from. Thank you.

And I guess this is my follow-up, Cosmo.

At the end of your opening remarks, you discussed ad market being in the consolidation phase.

Do you think that there's divergence across maybe the sole treasuries and, you know, if you see other sole treasuries trading at deeper discounts? I'm curious where you sit as far as a consolidator of existing DATs or whether you see that as an attractive path to, you know, creating soul per share. Thanks.

Yeah, of course, Matt, as I'm sure you can appreciate, it's, you know, I can talk in generalisms without talking about any specific name. The reality is that there are only so many Solana deaths out there, and, you know, the space is small, and so we all know each other. And there's always a need to find, if you want to do the dance, you need to find a dancing partner. And so, you know, finding the right circumstances, a timing, a management synergy perspective just requires a lot of work. I think the opportunity for accretion is absolutely there.

And from our perspective, you know, we're happy to do anything that maximizes shareholder value um uh on either side of the coin does that answer your question yeah yeah thank you thank you this does include the question and answer session as well as today's program thank you ladies and gentlemen for your participation you may now disconnect good day