Sol Strategies Inc. Common Shares Q1 FY2026 earnings call

• Launched STKESOL, a Liquid Staking Token, a major strategic milestone expanding offerings. It allows SOL holders to receive a receipt token, earn rewards, and has unique features like using stake with score for validator allocation. • Validator network scaled significantly, serving over 31,000 Unique Wallets, up 63% from 19,000. Assets Under Delegation grew to over 3.3 million SOL. • VanEck selected as SOL staking provider for their U.S. spot Solana ETF. • Optimized balance sheet by restructuring a $25 million credit facility and completing a $30 million life equity offering. • Pursuing dual-pronged growth strategy with organic pipeline development and active M&A strategy, evaluating strategic M&A opportunities.

Staking income grew 69% year-over-year, 120% on a SOL basis. SOL treasury expanded to approximately 529,000 tokens. Total staking and validation income reached CAD 2.1 million, up 69% from CAD 1.2 million in Q1 fiscal 2025. Reported net loss was CAD 11.9 million compared to net income of CAD 3.2 million in the prior year's period. Adding back noncash and nonrecurring items, adjusted loss was approximately CAD 500,000. Other comprehensive loss included a CAD 53.5 million unrealized markdown on cryptocurrency holdings. Total operating expenses were CAD 7.7 million versus CAD 1.3 million in the prior period.

• Continue to evaluate strategic M&A opportunities as market conditions create attractive environment. • Focus on executing strategy regardless of SOL price volatility, building long-term infrastructure. • Expect institutional adoption of blockchain infrastructure to continue regardless of token prices, with lower prices potentially accelerating institutional interest. • Anticipate more ETF launches, custody integrations, and traditional finance build-out on Solana in the next 12 months.

• Crypto markets are volatile, business metrics can fluctuate significantly. • Broader macroeconomic corrections across crypto and global markets, ongoing shifts in fiscal policy and interest rates could impact business. • Uncertainties related to jurisdiction-dependent tax advantages of LSTs.

Q: Can you give more color on M&A thoughts and types of acquisitions?

A: Looking at opportunities in infrastructure or product space in Solana ecosystem, including larger scale businesses with existing revenue and smaller teams with strong promise.

Q: How does LST fit in existing staking business and revenue expectations?

A: Liquid staking acts as aggregator above validator layer, not competing with native validation. Charges 5% fee on rewards from liquid staking protocol, similar to running a validator with commission.