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Acting editor-in-chief
Gary McFarlane
Acting editor-in-chief
Gary McFarlane
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Publicly traded Solana holding company Sol Strategies Inc. (CSE: HODL) (OTC Pink: CYFRF) has announced that well-known entrepreneur, investor and crypto evangelist Anthony Pompliano (aka ‘The Pomp’) has been appointed as an advisor.
According to yesterday’s press release of the announcement Pompliano “leverages his extensive experience to provide strategic direction to Sol Strategies”.
Pompliano is the CEO of investment firm Professional Capital Management, which invests in both public and private capital markets.
With more than half a million subscribers on YouTube and a podcast (The Pomp Podcast) that has been downloaded more than 50 million times, plus an influential investment blog – The Pomp Letter – that has 260,000 subscribers on substack, Pompliano’s reach is arguably worth its weight in gold.
‘The Pomp’ namechecks Sol Strategies on CNBC
The Pomp is already earning his crust. Below is Pompliano on CNBC talking about the unprecedented opening up of the crypto market to traditional finance – and the sorts of companies, like Sol Strategies [at 4:45 in the video], that will likely be the beneficiaries as part of a ‘balance sheet’ strategy:
Commenting on his appointment Pompliano said: “Joining Sol Strategies as an advisor is an incredible opportunity to contribute to the growth of the company.”
He continued: “Sol Strategies’ commitment to giving public market investors access to the Solana ecosystem is a valuable strategy that should be well-received by capital allocators. I look forward to working with the team to drive impactful investments and accelerate the business.”
Subject to board and Canadian Securities Exchange (CSE) approval, Pompliano has been granted 563,669 Sol Strategies restricted share units.
That is already paying off for Sol Strategies, as the share price shot up to $1.61 in its primary listing (HODL) on the CSE, finishing the day up 14% at $1.42. HODL was the top-performing crypto stock in North America yesterday. Rival Microstrategy, was down 4.37% at the close yesterday.
Pompliano invested early in Coinbase, Lyft and Reddit – Sol Strategies headed for Nasdaq?
The Pomp knows a thing or two about investment, having been an early investor in Coinbase, Lyft, Reddit and Everlywell, a pioneer in home health testing, so his backing makes him a good fit for Sol Strategies as it seeks to onboard both retail and institutional investors.
The higher the stock price climbs, the closer it gets to an all-important listing on the Nasdaq–and The Pomp will probably play a big part in making that happen.
Sol Strategies holds SOL tokens in a strategy similar to Microstrategy, which holds Bitcoin, as Sol Strategies chairman Antanas Guoga highlighted in an X post a moment ago:
However, Sol Strategies is much more than just a holding company because it invests in the ecosystem, too. The company earns revenue in the form of block rewards from being a validator and acting as a validator on behalf of third parties, from management fees and from MeV (maximum extractable value). Last week Sol Strategies acquired four Solana validators from Cogent Crypto.
This is how Pompliano assessed the value proposition represented by Sol Strategies in a recent Pomp Letter post for his subscribers, which is worth quoting from at length:
But the company also runs validators for other SOL holders to stake their assets. For these assets, Sol Strategies earns block rewards, as well as a management fee on staking and MeV revenue. In the past 7 days, this revenue was 142.72 SOL (7,421.44 annualized). This suggests the company will receive another $1.9 million in revenue from their external staking management services.
If my math is correct, the company will generate another $4.7 million of SOL every year that gets added to their current balance sheet. This number is likely to increase in the coming months because Sol Strategies has been acquiring validators from other companies, such as the recent acquisition of four validators from Cogent Crypto. The Cogent Crypto SOL validator generated 562 SOL in the past week (29,224 annualized). Sol Strategies purchased 78% of this validator, suggesting an additional $5.8 million of SOL from this acquisition alone.
If you take the current market cap of ~ $130 million and subtract the ~ $33 million of SOL on the balance sheet, it appears the company will be trading at less than 10x revenue once the Cogent Crypto acquisition closes [emphasis added by Cryptonews] — not bad for a company that is growing relatively fast in a sector that is poised to do well in a crypto bull market.
Antony Pompliano, CEO of Professional Capital Management
Co-founder of Valkyries and now CEO of Sol Strategies Leah Wald, commenting on the appointment of Pompliano, said: “With the growing interest in the Solana ecosystem, Mr. Pompliano’s unparalleled experience in bridging traditional finance and digital assets makes him an invaluable addition to Sol Strategies.
“His insights will be instrumental in advancing our mission to ensure secure pathways for investors to access Solana’s success.”
Disclaimer: The information in this article is not investment advice and is provided for informational purposes only. Capital at Risk.
