Solana treasury earns $2.5M in staking rewards but had to sell equity to raise $12M in cash for operations

Solana Company, a Nasdaq-listed SOL treasury under the ticker HSDT, recognized $2.512 million of staking revenue in the second quarter. But the rewards were automatically restaked while the business used an estimated $11.892 million of cash in operations, so staking did not itself supply the cash needed to run the company.The filed results also show a $25.389 million realized loss on digital assets, $11.116 million of general and administrative expenses and a $30.256 million net loss. The realized loss was about 10.1 times staking revenue, but it was an accounting charge rather than an equivalent cash outflow.Accounting losses and cash needs moved differentlySolana Company recognized staking revenue when it earned approximately 31,200 SOL, then automatically restaked the tokens. Its cash-flow statement subtracts the staking revenue as a non-cash reconciling item. Selling SOL can generate cash later, but the recognized revenue did not arrive as dollars available for payroll and other operating costs during the quarter.The company’s quarterly filing says the realized loss arose when it sold SOL and when SOL posted as derivatives margin collateral was derecognized. The filing adds rea...