Solana company stock, HSDT, has seen a price pump as traders price in bullish news. The firm announced they are now allowing for institutional borrowing using staked SOL for its investors.
Staked SOL Loan Launch Sends Solana Company Stock Higher
The SOL treasury firm has seen its shares jump substantially in value amid the new development. The stock jumped as high as over 17% before closing the market with a nearly 15% gain. It added another 3% during after trading hours.
This comes after it said in a press release that it will enable institutions to borrow against natively staked SOL while maintaining assets in custody. This is meant to provide liquidity from treasury holdings in a protracted bear market for Solana company-linked stocks.
The Nasdaq-listed company, which was previously Helius Medical Technologies, teamed up with Anchorage Digital and Kamino to allow loans against SOL that are staked. This will allow stakeholders to earn staking rewards while providing liquidity for on-chain borrowing instead of unstaking or selling their coins to raise funds.
This also follows a trend of Solana treasury companies building on offerings through their holdings. For example, last month, DeFi Dev Corp said it would be using some of its SOL to invest in yield farming. This is in a bid to boost its treasury instead of leaving it idle.
Meanwhile, this new offering could also help institutions keep their natively staked SOL managed while keeping it productive.
“Institutions want access to the most efficient sources of onchain liquidity, but they aren’t willing to compromise on custody,.. this allows institutions to keep natively staked SOL held with a qualified custodian while using it productively,” Nathan McCauley, CEO of Anchorage Digital said.
The stock price went up to approximately $2.30, having recovered from a record low of about $1.80 earlier this week. The Solana company stock is still down by about 90% since the company shifted to a SOL treasury model last year.
SOL Treasuries Move to Protect Capital Amid Market Crash
The latest development by the company comes as publicly listed Solana treasury companies continue to come under pressure following the drop in SOL from $245 to around $83 amid the crypto market crash.
A drop in the price of tokens has had a significant effect on the balance sheets of companies, with many now depending on staking revenue rather than the price of tokens. This also affected the Solana company HSDT stock value as it worsened.
Sharps Technology recently revealed that its treasury is earning around a 7% annualized staking return while scaling its validator business. Also, SOL Strategies introduced a liquid staking token collateralized with over 500,000 SOL. They also added a fee-generating product in addition to their validator and treasury business.
