Solana Will Outperform Ethereum and Bitcoin as a Treasury Asset, Says Cantor Fitzgerald
Highlights
- Solana treasury companies are poised to gain a range of benefits from holding SOL on their balance sheets.
- A Cantor Fitzgerald report forecasts that Solana will outperform Ethereum and Bitcoin as a corporate treasury asset.
- Several corporations are making SOL the primary asset in their treasuries, closely following Strategy’s playbook.
Companies adopting Solana for their treasuries are growing rapidly. They are drawn to cryptocurrency for its staking capabilities and broad utility. A Cantor Fitzgerald report predicts that Solana will surpass Ethereum and Bitcoin as the preferred treasury asset in corporate treasuries.
Solana Treasuries Will Outperform Bitcoin And Ethereum
Analysts at global financial services firm Cantor Fitzgerald have predicted Solana’s rise as a favored corporate treasury asset. According to the report, companies holding Solana on their balance sheets are positioned to reap numerous benefits.
From the outset, Cantor Fitzgerald analysts note that companies with Solana treasuries can emulate Michael Saylor’s strategy of raising capital. Additionally, these public companies offer investors exposure to SOL, bringing with it a variety of advantages.
Companies holding SOL can stake their tokens to earn capital without resorting to share dilution. In contrast, MicroStrategy, now rebranded as Strategy, cannot stake its substantial Bitcoin holdings and instead issues preferred stock, such as STRD, to fund further purchases.
“Combining staking with treasury operations should result in Solana treasury companies growing SOL per share faster than Bitcoin treasury companies growing BTC per share, all else being equal,” the report read.
The report also highlights Solana’s expanding utility in tokenization, moving well beyond meme coins over the past year. Moody’s has used Solana for credit rating tokenization, while Kraken is eyeing a tokenized stock offering on the blockchain at a time when Ethereum’s metrics appear stagnant.
A Wave Of Companies Turn To SOL
A growing number of companies are launching Solana treasuries, drawn by the advantages outlined by Cantor Fitzgerald. Hong Kong-based MemeStrategy recently launched a Solana treasury with a purchase of 2,440 SOL, which triggered a 28% rally in its stock price.
In another notable development, DeFi Development Corp. secured a $5 billion equity line to fund its aggressive SOL accumulation. According to Cantor Fitzgerald, the company is well-positioned to benefit from its SOL treasury reserve, thanks to its access to U.S. capital markets.
The report also identifies Upexi Inc. and Sol Strategies Inc. as firms capitalizing on their SOL accumulation strategies. Over the past day, DeFi Development’s shares have risen 20%, while Sol Strategies climbed 8.3%.
Conversely, SharpLink Gaming, after becoming the largest publicly traded Ethereum holder, saw its stock value plummet by over 70% hours after the announcement. However, analysts attribute the drop to investors misinterpreting an SEC filing, rather than the company’s move to hold Ethereum in its treasury. Since then, the figures have improved.
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