In a pivotal shift for institutional sentiment, Cantor Fitzgerald has initiated coverage on three emerging digital asset treasury firms that have chosen Solana (SOL) as their primary reserve cryptocurrency. The move signals growing confidence in Solana’s long-term viability—not just as a smart contract platform, but as a strategic treasury asset capable of rivaling Ethereum and even Bitcoin in certain financial contexts.
The three companies under new analyst scrutiny are DeFi Development Corp., Sol Strategies, and Upexi—all of which have publicly committed to holding Solana as a core component of their corporate treasuries. In a research note dated June 16, Cantor analysts emphasized that while Bitcoin continues to dominate the "digital gold" narrative, SOL is being significantly overlooked despite compelling technological and economic advantages.
Why Solana Is Gaining Institutional Attention
Cantor’s thesis hinges on several key differentiators between Solana and its peers, particularly Ethereum:
“Developer growth on SOL has far exceeded that on ETH recently, and we expect this to continue. Thus, using SOL over ETH as a treasury asset makes sense: these businesses think that SOL can overtake ETH, which currently has a market cap that is ~259% higher than SOL.”
With a current market capitalization of approximately $79 billion, Solana ranks as the sixth-largest cryptocurrency. However, its real value proposition lies in performance: higher throughput, lower transaction costs, and faster finality compared to Ethereum. These attributes make it not only attractive for decentralized applications but also more efficient for treasury operations involving staking, yield generation, and on-chain activity.
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Staking Advantage: A Game-Changer for Treasury Growth
One of the most significant distinctions highlighted by Cantor is Solana’s native staking capability, which allows companies to earn yield directly on their holdings. Unlike Bitcoin—which functions primarily as a non-yielding store of value—Solana enables treasury assets to grow passively through network participation.
This dynamic gives Solana-based treasury companies an edge: they can compound value at the asset level and through equity appreciation. As analysts noted:
“Solana treasury companies [can grow] SOL/share faster than BTC treasury companies growing BTC/share.”
For forward-thinking firms, this dual-growth model presents a powerful incentive to diversify beyond Bitcoin-centric strategies.
Company-Specific Outlooks and Price Targets
Cantor assigned an “overweight” rating to all three covered firms, reflecting strong growth potential based on their strategic alignment with Solana’s ecosystem.
DeFi Development Corp. (DFDV)
Led by CEO Joseph Onorati, who has been dubbed “the Michael Saylor of Solana,” DeFi Dev Corp. advocates for multi-chain treasury models. Onorati believes both Ethereum and Solana are viable due to their active DeFi ecosystems, native yield opportunities, and volatility profiles.
Cantor set a **$45 price target** for DFDV—representing substantial upside from its current trading level near $30.
Upexi (UPXI)
Upexi’s Chief Strategy Officer, Brian Rudick, positioned Solana as “the best high-performance blockchain” for three core reasons:
- First-mover advantage among second-gen smart contract platforms, enabling mature tech and strong network effects.
- A vibrant ecosystem of developers, users, and decentralized applications (dApps).
- Leadership across key metrics—including daily active users, dApp revenue, and decentralized exchange (DEX) volumes—despite a smaller market cap than competitors.
Cantor’s $16 price target implies a **60% upside** from Upexi’s recent $10 valuation.
Sol Strategies
This Canadian publicly traded firm recently filed an initial prospectus allowing for up to $1 billion USD in potential financings** focused on Solana opportunities. With a current share price around CA$2.40 (US$1.80), Cantor’s **CA$4 (US$2.95) target suggests a 62% increase.
CEO Leah Wald stated that the analyst coverage validates the growing institutional recognition of Solana’s potential:
“What matters is having the right chain for the right use case… Solana’s unique principles provide for an interesting opportunity.”
Broader Market Context: From Treasuries to Regulatory Shifts
While Solana gains traction in corporate treasury discussions, broader crypto markets are witnessing transformative developments:
- Ripple and Circle have both submitted national bank charter applications to the U.S. Office of the Comptroller of the Currency (OCC), signaling deeper integration between traditional finance and blockchain infrastructure.
- BlackRock’s iShares Bitcoin Trust (IBIT) has become the fastest ETF to reach $70 billion in assets, generating over **$187 million annually in fees**—surpassing even its flagship S&P 500 fund.
- Miners like Hut 8 and Riot Platforms are rallying amid rising Bitcoin prices and strategic energy deals.
- Coinbase continues expanding its institutional toolkit through acquisitions like Liquifi (token management) and Deribit ($2.9B options platform buyout).
These trends underscore a maturing ecosystem where performance, compliance, and scalability increasingly determine competitive advantage.
Frequently Asked Questions (FAQ)
Q: Why are companies choosing Solana over Bitcoin for treasuries?
A: While Bitcoin remains the most secure and decentralized digital reserve asset, Solana offers yield through staking and superior on-chain efficiency—allowing companies to grow their holdings actively rather than passively.
Q: Is Solana safer than Ethereum for long-term treasury storage?
A: Safety depends on use case. Ethereum leads in decentralization and security budget; however, Solana excels in speed, cost, and developer activity—making it better suited for dynamic treasury strategies involving active DeFi participation.
Q: Can staking rewards significantly impact shareholder value?
A: Yes. Continuous compounding of staked SOL increases the per-share crypto holdings without dilution, enhancing intrinsic value over time—similar to stock buybacks but achieved organically via network rewards.
Q: What risks are associated with holding Solana in corporate treasuries?
A: Key risks include price volatility, centralization concerns (fewer validators than Ethereum), and reliance on uninterrupted network performance. Firms must balance innovation with risk management.
Q: How does institutional coverage like Cantor’s influence market perception?
A: Analyst initiation brings credibility, attracts investor attention, and can catalyze capital inflows—especially when paired with clear financial models and achievable price targets.
Final Thoughts: The Rise of Performance-Driven Treasury Models
As more companies explore blockchain-based treasury strategies, the debate is shifting from whether to hold crypto to which crypto best aligns with strategic goals. Cantor’s coverage underscores a critical insight: Solana is no longer just a dApp playground—it's emerging as a legitimate contender in institutional finance.
With superior throughput, vibrant ecosystem growth, and yield-bearing capabilities, SOL offers a compelling alternative for firms seeking both capital preservation and compounding returns. As regulatory clarity improves and infrastructure matures, expect more public companies to follow this path—ushering in a new era of performance-driven digital treasuries.
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