Sol Strategies Inc. Common Shares Q2 FY2026 earnings call

Corporate Governance and Leadership Updates

• The company strengthened its board of directors by adding crypto industry veteran Les Borsi and public company veteran Dennis Logan, and appointed John Matonis, a blockchain industry leader since the early 2010s, as board chairman.
• Michael Hubbard was appointed permanent Chief Executive Officer on March 31, 2026, and Steve Ehrlich was formalized as full-time Chief Strategy Officer, supporting the company's long-term capital market and growth strategy.
• The company cleaned up its capital structure, reducing total liabilities by approximately CAD 9 million via paying off legacy debt to the former chairman to improve capital efficiency.

Product Launch and Operational Milestones

• In January 2026, the company launched StakeSol, a liquid staking token for the Solana blockchain that lets users retain liquidity for trading, collateral, or additional DeFi yield while earning staking rewards on their underlying SOL. StakeSol allocates SOL across up to 75 validators using the company's proprietary WizScore ranking methodology, which scores validators based on performance, security, and decentralization. By the end of March 2026, StakeSol held 768,000 SOL (≈ 83 million CAD) in deposits.
• In April 2026, the company completed the acquisition of Dark Lake Labs' assets, including the Zyga zero-knowledge proof engine built natively for Solana, and added the entire Dark Lake engineering and operations team to the company. Zyga enables privacy-preserving transaction execution, including a built-in dynamic slippage protection tool for private trades.
• The company signed a definitive agreement to acquire HoudiniSwap, a non-custodial privacy-enabled cross-chain swap aggregator operating across 100+ blockchains and 30+ centralized and decentralized exchanges, for 18 million USD, with closing expected by the end of May 2026. More than 50% of HoudiniSwap's trailing 12-month transaction volume touches Solana.

Strategic Direction

• Management is executing a deliberate vertical integration strategy to build a full-stack presence across the Solana ecosystem, starting from the foundational validator infrastructure layer, moving up to user-facing liquid staking products, then expanding into privacy-preserving technology and cross-chain transaction infrastructure. Each new layer leverages synergies with the company's existing assets.
• Management views Solana as a growing, scalable dominant financial infrastructure layer for digital assets, with expanding transaction volume and growth across use cases including trading, stablecoins, prediction markets, and perpetual futures.
• The company supports the advancing U.S. Clarity Act, noting that clear, healthy regulation that protects users and enables innovation is critical for the digital asset industry to reach full potential.
• Longer-term pipeline targets for additional expansion include Vault products, real-world asset tokenization, stablecoin infrastructure, and RPC technology, with the end goal of building a full suite of compliant, accessible APIs for wallets and institutional users across the Solana economy.

Sole Strategies' core operating segment is Solana blockchain validation and staking. For the six months ended March 31, 2026, adjusted revenue (excluding accounting losses from cryptocurrency conversions and revaluations) from the company's own stake and third-party validators was approximately CAD 3.3 million, and for the three months ended March 31, 2026, adjusted revenue was approximately CAD 1.2 million. The company holds an estimated 5% of all Solana staking wallet delegations to its managed validators, representing the core revenue contribution segment. The newly launched StakeSol liquid staking product added a new 5% cut of all pool staking rewards as an additional revenue stream. As of March 31, 2026, StakeSol had 768,000 SOL deposited, equivalent to roughly 83 million CAD. The pending HoudiniSwap acquisition is expected to add an estimated CAD 12-13 million in annual revenue, with a minimum 2.5 million CAD annual EBITDA floor via an earn-out structure, and will add a new cross-chain transaction infrastructure segment following closing.

No formal full-year financial guidance was provided on the call. Management confirmed the following forward-looking statements:

• The HoudiniSwap acquisition is expected to close by the end of May 2026, and upon closing will add material revenue and profitability to the company's business, materially improving future financial results. Management projects HoudiniSwap will generate approximately 12-13 million CAD in annual revenue, with an earn-out structure that guarantees a 2.5 million CAD annual EBITDA floor.
• Management is actively reducing operating expenses to move the core validator business closer to breakeven in the current lower Solana price environment.
• Management expects continued growth of the Solana and broader digital asset economies, and the company is positioned to capture that growth as a full-stack compliant infrastructure provider.

• The company noted that crypto markets are highly volatile, and the price of Solana declined from approximately 208 USD at the start of fiscal 2026 to 83 USD as of March 31, 2026, leading to a 56.5 million CAD revaluation loss on digital asset holdings during the six-month period. Business metrics can fluctuate significantly alongside crypto price volatility.
• All forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from projections. Detailed risk factor disclosures are available in the company's public filings including the latest press release, MD&A, and CEDAR Plus filings.
• The HoudiniSwap acquisition has not yet closed, and closing is subject to undisclosed customary closing conditions that may not be met by the expected end-of-May timeline.
• The company reported an operating loss of approximately 2.6 million CAD for the six-month period ended March 31, 2026 in the lower Solana price environment, and there is no guarantee that cost cutting actions will achieve breakeven in the current market.

Q: What are the near-term product and monetization opportunities from the Dark Lake and HoudiniSwap acquisitions?/ A: Management sees the largest opportunity in integrating Zyga zero-knowledge technology with HoudiniSwap's existing infrastructure. HoudiniSwap currently offers cross-chain routing for over 1 million tokens, public and private swaps, and B2B API access for third-party partners. Combining Zyga's privacy capabilities will allow the company to offer enhanced private swap services to HoudiniSwap's API partners, with the biggest potential for growth on the Solana blockchain. Full details of the integrated product are still in development.\n\nQ: What synergies exist between the existing validator business and the new acquisitions, and what impact can they have on fee capture and staking yields?/ A: The company's core validator business operates at the base of the Solana network, processing roughly 1% of all network blocks. This position gives the company early access to transactions and the ability to prioritize transaction inclusion for the new HoudiniSwap products. Staking user bases can also be cross-sold: HoudiniSwap users can be brought into the company's native and liquid staking ecosystem, while existing staking users can be offered HoudiniSwap's swapping services. Synergies like loyalty programs are still in early development.\n\nQ: Is the company shifting its strategic direction to become a blockchain infrastructure middleware company, and will the new acquisitions be P&L positive quickly?/ A: Management confirmed this strategic shift is accurate: the company is building vertically up the Solana stack, starting from foundational validator infrastructure, moving up to user-facing liquid staking, then adding cross-chain swapping, privacy functionality, and middleware services that serve both retail and institutional users. The HoudiniSwap acquisition is structured to be immediately profitable, with projected annual revenue of 12-13 million CAD and a guaranteed earn-out floor of 2.5 million CAD annual EBITDA. Management also noted additional upside from expanding the existing HoudiniPay business combined with Zyga's privacy technology for cross-wallet money transfers.