Before we begin, this presentation will contain forward-looking statements. Actual results may differ materially from said forward-looking statements, and DFDV, the company, thus claims no obligation to update said forward-looking statements. Not financial advice. Do your own research. So once upon a time, for those of you who have toddlers and may sympathize with this situation a little bit, I was in a Spanish café with my wife, and toddlers have this really funny thing where they actually go through a phase where they mix up their letters a bunch of times. And it's actually kind of cute at first when they mix up their letters because, you know, they'll say stuff like, "Daddy, please put shoe on my put instead of foot." Or they'll say, you know, "Daddy, please, want to go over set me pre instead of free," right?
It's a little less cute when you're trying to pronounce the word for fruit in Spanish, which in Spanish is fruta. And all of a sudden your toddler starts screaming in the middle of a Spanish café asking, "I want puta." And I blurted out for a reason here, but for those of you who are tuning in, it is a word that rhymes with itch, and I will spare you that one letter. But this is just one of the many trials and tribulations of being a parent to a couple of toddler twins. I mention this because the one letter that happens to screw everybody up in DATland these days is the letter M. Multiple is what the M stands for. The M in MNAV. A lot of people who say, "Hey, digital asset treasury companies shouldn't trade in MNAV.
They should trade one-to-one with the underlying asset they're acquiring." The funny thing is, despite all this skepticism, a company like Strategy, who we at DeFi Development Corp took inspiration from, has consistently traded at an MNAV premium. That is to say, it trades above the value of its BTC holdings. These numbers are a couple days stale here, but if you look, effectively MSTR has outperformed Bitcoin itself by a magnitude of one and a half X. This is a dynamic that a lot of investors will describe as, trying to buy a $100,000 checking account for $200,000.
When I look at what we have done at DeFi Development Corp, and we are the first ever Solana treasury company to kick off in the United States, we have actually outperformed SOL by a more considerable magnitude, putting up over 1,000% equity performance since we kicked off our treasury strategy. I like showing this slide as well, which is that DFDV was actually the number one DAT stock of 2025. We outperformed Strategy, BitMain, all the big names, and we're actually the only SOL DAT with positive returns post-treasury launch. Let's start with a little bit of why this MSTR exists, why this four-letter works so many people up. Admittedly, I've mentioned this before, I started as a skeptic of MNAV myself.
And one of the things that, I had to try to frame in my mind a little bit when dealing with the idea of MNAV is trying to think of BTC or crypto accumulation as, maybe not being so different from earnings or free cash flow, right? In the sense that a company like Strategy goes and buys a bunch of Bitcoin, puts it on its balance sheet, it's accretive to the asset side of the balance sheet. And if you have a company that generates free cash flow, that free cash flow goes into your cash and cash equivalents and is accretive to that side of the balance sheet. We just don't really give these companies credit because this is denominated in Bitcoin. But there's some other dynamics at play that sort of, I think are worth peeling back here a little bit.
So I actually start with this simple sum of the parts approach, which we spoke about at our investor day, but I want to walk through one more time here, which is to say, let's actually look at the different parts of Strategy's business and see if we can make sense of what this premium amounts to. Let's start with Strategy's fully diluted market cap as of the close on January 8th, $57 billion. Let's back out the $0 billion software business because I don't think anyone's really ascribing much value to that these days. You've got roughly $61 billion of BTC holdings, a little more now, since we did get an update from them on their treasury. But that's not real BTC NAV, right? There's preferred equity, you've got in and out from there, some liabilities.
So really you're at about $55 billion of net asset value of the company. So you've got $2 billion of this thing. And this is the thing that confounds most people. Now you say, "Okay, $2 billion isn't that much," but historically it hasn't been uncommon for this whole equation that I've displayed here on the screen to show a much, much larger gap, right? Something like $100 billion fully diluted market cap relative to a much smaller amount of BTC holdings. But what I would posit is that this is the value that the market is assigning to future BTC accumulation, right? This is the actual value of the treasury going up over time.
Now I started to think to myself, "Well, why can't we assign some multiple to this treasury operation, not too dissimilar from the way you would assign a multiple to an earnings or a free cash flow stream?" And if you actually look at Strategy's BTC gain in 2025, the implied backwards-looking multiple in this case is around 0.2 times. And historically, if you actually do this exercise from the time that Strategy has kicked off, its treasury strategy in August 2020, on a forward multiple basis, it has averaged 0.3 times. Now, why is this important? Why do I usually context set with this?
If you look at traditional equities through the lens of price to earnings, and I put up the five-year EPS CAGRs of some of the leaders in tech, and eBay on here is a good example of a company that doesn't really grow its earnings organically, right? They do so, primarily through share repurchases. Here are the P/E multiples you see. Here's that forward multiple that I just showed on the screen a minute ago. Why do we underpay for Strategy at this, I'm going to say, distressed multiple when tech companies trade at these elevated multiples? This is simply adjusting for BTC's price accumulation over the last few years. What would you pay for a company that is able to grow this "earnings stream" at this CAGR over the last five years?
And of course, the pushback to this is that this earnings stream is actually recursive. This is the part where people really get bogged down when they think about that $200,000 checking account and the $100,000 of value that's actually in it. The MNAV exists, that premium exists because the market wants future crypto accumulation. But the future crypto accumulation is only made possible by the MNAV itself. It's that thing that your intern plugs into an Excel model and you get all the broken error formulas spread throughout your spreadsheet.
But this is the genius of what Joseph and Parker, our co-founders at DeFi Development Corp, have set out to do, is that when you do a proof of stake treasury, you are freed from this recursive loop, which is to say that when you have a productive asset like Solana that you're sitting on, you can actually put it to work, you can actually generate cash flows, revenues that free you from the dependence of the MSTR model. So with that as the precursor, let's talk a little bit about Solana itself. But before that, what would you consider to be best-in-class monetization for a digital network? I've thrown some average revenue per daily active user stats on here. This is simply looking at public filings, reports of some leading tech companies, and taking their 3Q ARPU and annualizing it.
You can see Snap at just shy of $13, Reddit $20, Roblox $50, and Meta, of course, king of monetization at $58. Solana last year did $438 of average revenue per daily active user. Think about that. 8X the ARPDAU of Meta. And yet most people that I talk to these days actually still don't even know what Solana is. So let's talk about it. What is Solana? Solana is a global network of computers that processes transactions and apps instantly for almost no cost. Think of it like an infrastructure layer for moving value around. So I like to tell people, if Solana is an electric grid that keeps the lights on, powers your air conditioning, whatever have you, you can think of SOL, the token of the Solana network, as electricity.
It's this like vibrant thing that you can put to work, and, owning SOL is almost like owning a piece of this, hugely vibrant piece of infrastructure. It's almost like being able to go back in time and say, "How can I take a stake in the internet itself?" Now, for those of you who are unfamiliar with Solana or learning about it just now for the first time, if I'd have you take away one thing, it's this slide right here. You can think of Bitcoin as the best store of value on the planet, akin to digital gold, but Solana as the thing that actually moves it, almost like digital fuel. Now, why do we think it is the best-in-class layer one crypto? It's for these reasons up here. It's incredibly fast, it's cheap to use, it's highly accessible, and really, really scalable.
These features matter the most when trying to determine which Layer 1 we wanted to go and invest in. Of course, we could talk about the architecture and all the technology, but I think that would bore a lot of you in the audience right now, but also isn't necessarily the thing we want to focus on, right? We want to focus more on the outcomes that the network is able to drive and, of course, the applications that can get built on top of it. So let's talk about speed. A little bit of a chart that shows Solana is materially faster than other blockchains. So this is Solana relative to other leading chains like SUI, BNB, Layer 2s like Base, and of course Ethereum itself.
I always like to throw this chart up as well to show Solana's transactions per second potential relative to, say, Bitcoin on the very bottom here, 7 TPS, which again, we love Bitcoin. We think it's the best store of value on the planet, but at 7 TPS, it's not very useful, right? That's sort of the equivalent of bringing a block of gold to your Starbucks and trying to buy a coffee with it, and it just wouldn't work, but pretty on par with centralized infrastructure. In fact, on the October 10th liquidation event that occurred not too long ago, we saw Solana's TPS go in excess of the 65,000. Transaction finality itself, measured in milliseconds, which is, of course, what you want when you are building real-time finance applications on a blockchain. Not only is it fast, it's really, really cheap.
This is an important point that I think often gets missed when we're comparing across blockchains in TradFi circles over here. So, we've put this chart together to show that Solana fees are literally fractions of a cent. You can compare that to Bitcoin at just under a dollar, Ethereum, which frequently is north of $1. And the fees are also highly predictable, which is another important feature. You don't get a lot of variance in those fees over time. So this Fee Stability Ratio is an internal metric we've come up with, and the higher it is, effectively the greater your stability during periods of high congestion or network activity. And in fact, if you were to look back at that October 10th Liquidation Event that I was talking about, it wasn't uncommon for you know Ethereum fees to be in the hundreds of dollars.
I think they spiked to as high as $1,000, right? Which effectively made that network unusable, versus Solana fees, which stayed, literally at fractions of a cent, I think maybe spiked to $0.25 at the worst case, and then immediately reverted back. Now, why do low fees matter? Well, of course, they unlock a multitude of potential use cases. I've thrown one on here that's sort of near and dear to my heart, which is talking about video game transactions via traditional rails, of course, you have the, the big distributors who take a giant chunk of 30% right off the bat. But then of course you have, transaction fees that get thrown on top of that.
So you can imagine for a $10 video game transaction that the publisher, the creator is not so happy that so much of the of the economics gets taken away, just via processing the transaction itself. Versus if you were to run this on Solana, not only would you not be paying an intermediary, but the transaction fees themselves are more or less negligible, right? At fractions of a cent. There's so much you can do, of course, when you're a publisher and you happen to retain 33% additional fees, right? There's benefits you can pass on to the consumers, you can make the experience in your game better. A whole host of, I'm going to say different use cases unlock in that scenario. Another example that I like to give is the idea of sending money overseas, right? Or sending a wire.
Most folks today aren't going to go and send, let's say, $25, $30 because they've got to go and pay a $25 wire fee, right? You usually send a much bigger chunk of change, cross-border, because the fees eat so much into it, right? This is the, what I would call akin to going to an ATM and taking out $10, right? You wouldn't go and, eat such a high percentage of fees. You want to withdraw a big enough amount that the, the fees become palatable. In the case of running this on Solana rails, that problem goes away. So think of all these microtransactions that get unlocked just by putting it on these superior rails. Let's talk accessibility.
One of the things I actually love about the Solana network, it's not just good tech, but people are actually using it, and you only need an internet connection to actually be able to access the network. So this is a chart that shows new wallets by chain in 2025, and Solana wallets came in at one billion, over one billion wallets created in the year 2025. That is more than all these other chains you see here combined. This is important in my mind because people are not just able to access the network, but they're clearly choosing to do so. And there's a lot of stuff happening on the network. So if you look at actual transaction activity, the fees generated by those transactions, Solana did 33 billion transactions in 2025. That's again more than all other chains combined.
Those transactions in aggregate amounted to about $1.4 billion of fee revenue in 2025. Again, the number one performing chain in terms of revenue. We often get asked about use cases. This is the one that I think is top of mind for Wall Street. We like to say if stablecoins are the ChatGPT of crypto, then Solana is Nvidia. It is the best-in-class infrastructure you could possibly port your assets over to. If we were to look at just stablecoin TVL as an example, it has grown at north of a 250% CAGR over the last five years. Solana has been the number one chain in terms of market share growth when it comes to stablecoins.
Of course, Ethereum remains the leader, but the analogy I give to people is, it's kind of like the equivalent of comparing the GMVs or the sales of Walmart versus Amazon back in the late 1990s, right? You can see where the trend is heading, and do you want to buy the current market share leader or the one who's clearly going to be the leader five or ten years out? So how do we think about valuing Solana? I mean, one approach might be to go back to that ARPDAU slide that I showed at the beginning and say, well, these are, these social media networks are all valued at, you know, some kind of EV to revenue multiple. That's a sign of multiple on that.
But I actually don't think valuing the, call it digital commodity of a network like Solana, versus a social media network necessarily makes a lot of sense today. So let's think about how we can value what did I call SOL, electricity, a little bit more intelligently. One way to do it might be to do the methodology that a lot of analysts ascribe to Bitcoin, right? Which is to say, look at all major asset classes, whether it's real estate, equities, global debt, whatever have you, and assume that SOL can get to some percentage of it the same way that, you know, a lot of folks have been saying Bitcoin can get to some percentage of the market cap of gold or exceed the market cap of gold. Sure, that's one approach, but again, what did we describe Solana as?
We described it as best-in-class infrastructure for moving value. So accordingly, Solana's true TAM, or the way to value it, should be to think of it in the context of global value transfer. According to McKinsey, there was $1.8 quadrillion in global value transfer in the year 2024, of which 2.4, sorry, $1.8 quadrillion, and of which $2.4 trillion represents the, the revenue TAM, right? That's the, the portion of that $1.8 quadrillion that was actually monetized. Our approach to get to $10,000 SOL, keep in mind we're roughly in the, just below $150 today, is to assume that Solana can capture a high single-digit percentage market share of this $2.4 trillion revenue TAM.
If you assign a 30x multiple to that, which is well below the historical 80x average that you've seen on Solana and, you know, across a lot of other major layer one networks, you arrive at $10,000 SOL to USD. The other thing to keep in mind with this 30x multiple, of course, is that it isn't such an egregious multiple to think about in the context of tech equities, right? And cash flow and earnings multiples that we see. To put that number in context, if you just got to 1% of global value transfer, you'd still be above 1K SOL, right? Our 7.5% target gets you to 10K, but just 1% still gets you to 1275 over here. If SOL was able to flip Ethereum above $600.
And to put that market cap in context, if you were to hit that $10,000 SOL USD price target, that would still put Solana at less than 1% of all these traditional asset classes combined, right? Think about those blocks that you saw at the beginning of this, price target presentation here, still a fraction of that. All right. So now a little bit about DFDV, which is what, a lot of you tuned in, for in the first place. So I call this faster, better, most obsessed, and I think it really encompasses the, I'm going to say key strategic priorities of the company, how we've operated, as well as how we plan to operate on a go-forward basis. It's a little bit of a, snapshot of the company today.
We like to say we're MSTR 2.0, the upgraded model, the very first SOL DAT in the US again, sitting on over $300 million of Solana today at a 1.3x multiple to net asset value. Again, slides not updated for yesterday's price action. We've grown our key metric SOL per share by over 70% over the last six months. This is a key distinction because when you think about the reason Strategy has outperformed Bitcoin by a magnitude of, call it 1.4 or 1.5x over the last five years, it's because they've been able to grow their underlying BTC per share, their Bitcoin per share by over 5x. Again, that's in BTC denominated terms.
So in our case, our North Star is SOL per share, and we've grown our SOL per share 71% over the last six months and have outperformed SOL by a magnitude of again, like 50x or so since we kicked off our treasury strategy. Let's talk a bit about our speed. I've already mentioned first non-BTC DAT, first SOL DAT in the U.S., first to tokenize our equity. We're the first DAT to run our own validator infrastructure in the United States, first to deploy our treasury on chain. We think this speed affords us a lot of advantages, effectively by being able to move as quickly as we have been. We've been able to experiment and iterate and just learn faster than a lot of other teams in the space.
The other helpful part about moving as quickly as we have and deploying as early as we did is that we have the lowest average cost among all SOL DATs in the space, right? There are a lot of folks that, quite literally bought the Pico Top, not to mudsling at anyone because I, I do love that we are seeing more companies deploying their treasuries into, into Solana. But we are fortunate enough to be buying. Our first purchase was, around the $100 range, if not slightly below that. And of course, the natural consequence of being first, again, is that, we are the top performing DAT stock since we kicked off our treasury strategy. Now, why did we move so quickly? This is a highly crypto-native team.
The entire core treasury team comes from Kraken Crypto Exchange, one of the most reputable and oldest crypto exchanges in the world. That is to say that this is not the team's first rodeo in crypto. It's not the team's second rodeo in crypto. We've all been operating in the space, either as investors, direct operators, builders, engineers for quite some time. The examples I give to people, well, Joseph, our CEO, was actually CEO of the first Canadian Bitcoin exchange back in 2013 while I was graduating college. Parker White, our COO, has been operating validators for many, many years, which gives him technical expertise. Our CFO, John Hahn, I don't know if he likes when I say this, but he had a Mt. Gox account. That tells you again how far back this team goes.
This is a team that really knows how to navigate the world of crypto exceptionally well. Now, that expertise leads us to our second big strategic advantage, which is what I call better, which stands for better yield. That is to say that DFDV has found a way to optimize Solana's native yield. And this is important, particularly given the context of the last few months where you have seen broad MNAV compression across the entire space, right? As more entrants have come into the digital asset treasury space, everyone's multiple to net asset value has compressed materially. Strategy, ourselves included, have seen MNAV compression of over 50% over the last few months. And that, of course, diminishes the ability for a DAT to fundraise as quickly and fundraise as effectively. So, in a bear market, having an organic source of yield really, really matters.
Going back to that slide that we had about the recursive loop and being freed from that recursive loop, this is really the key component to this, which is by virtue of being able to put our treasury to work and not just passively put it to work by staking with someone like Coinbase or, you know, a random third-party provider and letting it sit there and going to sleep, but really actively managing positions across DeFi, we've been able to find a way to optimize this yield. So we've guided to roughly 10% average organic yield. That's about 300 basis points above what you could get with a SOL ETF today. And we really think that the SOL ETFs more or less set the quote unquote risk-free rate for a Solana treasury company.
In Q3, we actually put up 11.4% average organic yield, so a little bit above that target. And you know, in any given month, quarter to quarter, you may see fluctuations in that 10%. So in Q4, we came in a little bit below that, but needless to say, we're pretty excited that we're able to generate yields consistently above that 7%, set by the ETFs, if you will. The last bit I'll highlight before turning it over for Q&A is we are the most shareholder-obsessed DAT in the world. We actually made a very, very concerted effort from day one to ensure that we were going to be the most shareholder-obsessed DAT in the world. Now, what does that mean? For starters, we believe in radical transparency.
If you go to our website, defidevcorp.com, dfdv.com, virtually any metric that you would need to assess our business is on the website from the breakdown from ordinary shares outstanding all the way to fully diluted shares outstanding to the debt that exists in our capital structure, to warrants and, effectively anything that I as an investor would want to see when analyzing a DAT, we've decided to throw it on there. This website, as I love pounding the table on it because our engineer has done such a great job with it, has actually been called best in class by both retail and institutional analysts, not just me, tooting my own horn over here. That's one element to being shareholder-obsessed. But the other component, which I think is pretty important, is that management collectively owns about 20% of the company.
This is the highest percentage ownership you will see across DAT land, if you will. Nobody has sold any shares. We all get comped on our North Star, SOL per share growth, right? There are a lot of treasury companies out there that maybe get comped on market cap or have strange asset management agreements in place that we feel are destructive to shareholders. We made a very concerted effort to align our incentives with those of shareholders. What's ahead? I was listening to a podcast with Reed Hastings recently, and he talked about how Netflix really thrives because they operate on the edge of chaos. It was his way of saying, like, he likes fostering a culture of innovation, letting people explore, do their thing. You don't ever want to let it get too chaotic, right?
where all the reins are loose and things get messy and you put your business at existential risk, but operate right at the cusp of chaos. And what I would tell you is that DFDV doesn't just operate on the edge of chaos. It actually thrives in it. We're incredibly excited about the things that we've laid out from all our DeFi partnerships to generate organic yield to our treasury accelerator to bring our proven model here in the States to several different international markets as well. But really this year is going to be about experimenting and trying to really show folks that we are not just willing, but fully capable of breaking from the DAT mold and effectively just taking some bold bets that could you know really shake us out from the rest of the pack. So that is a little bit on DFDV.
If you only read one thing today, you can read this slide. MNAV should imply some kind of multiple beyond what it's, you know, trading at today across the DAT space. SOL is going to 10K. It's an inevitability. We're not just uber bulls on it, but we feel very strongly there is a solid framework or valuation framework to get you there. DFDV is SOL on steroids. We offer you, not just greater price action, greater volatility, more yield, but we've tried to harness the best of Solana in every way possible to really drive value for shareholders, and our strategy is focused on these three pillars: faster, better, most obsessed. We really feel that copying the MSTR playbook isn't going to work, and this is going to be the year that we break the mold through some experimentation and what I call brilliant basics.
So with that, happy to turn it to any of you guys here for questions.
Hey, thanks for doing this. Appreciate it. I have a couple, in maybe no particular order. I guess first off, differentiation, the yield's really impressive what you want to get to do, but, differentiation beyond that, whether it's acquiring other companies in the SOL ecosystem, what are some opportunities in that, like maybe M&A that would apply to you guys? Anything you've evaluated and you think about?
Yeah, great question. I recall once upon a time when I was on the buy side asking questions like that too, and I always thought it'd be really funny if an executive could get up there and just say, "Yes, we've evaluated this company and this one, and we're going to buy them tomorrow." So unfortunately, that's not how it works. I can't tell you what we've evaluated, but needless to say, yes, we're not blind to the broad MNAV compression that has occurred in the last few months and where various players are trading, especially those that are at a steep discount. Now, I'll note a couple of things. I do think you're going to see consolidation, and there'll be some what I call cross-currency consolidation as well, right?
You might see an ETH DAT buy a BTC DAT if they're at a considerable discount, and then obviously just swap the BTC for ETH. But I do think that you need to see probably a greater divergence between the winners and losers in the DAT space before M&A starts to make a lot of sense. Let me give an example. Let's say one DAT is trading at 1.2x, another DAT is trading at 0.9x, and it's really easy to plug those into a spreadsheet and say, "Well, what if you acquire them at NAV? It's a win-win for everybody. It's all accretive." But oftentimes in DAT land, you have asset management agreements that need to get terminated, management payouts. There's obviously legal banker fees, all these things that get baked in and more or less diminish the ability to capture that spread.
So even though something might look very appealing on paper, it doesn't necessarily translate to, I'm going to say, that much value creation when you have a combination. So that's point one. Point two is there are a lot of teams to the extent that nobody's sitting on, like, let's say secure debt that where you could get margin called and, you know, your, your treasury's, encumbered or something like that. Like a lot of folks are probably going to be willing to sit out at a discount for quite some time, right? And just say, "No, I'm not, I'm not willing to do that. I think I can win. I'm going to wait for crypto to come back, wait for my premium to come back." That doesn't free a lot of DATs from things like activist risk, right?
Someone coming in and effectively forcing the company to be a forced seller. But in our case, we were very thoughtful about that on day one and structured our transactions such that we control effectively 80% plus of the voting power of the company. So, nobody can come in and force us to do that. But that is a real risk for other DATs that are, you know, trading at a discount and don't have that kind of structure. Anyway, long-winded way of saying yes, consolidation probably will happen. I don't expect there to be, you know, six or seven SOL DATs in a given region five years from now, maybe two or three. But I think you'll see different flavors of DATs, right?
I don't think it's just a one DAT take all per asset, in that maybe some DATs are focused on active management, right, and doing complex trading strategies in order to accumulate more of the underlying. Maybe some lean into the DeFi and crypto native angle. Maybe some are like waiting to aggressively deploy capital in a bear market, right? There's various ways that you can, sort of like set yourself apart from other DATs. And needless to say, I think we'll see some interesting models emerge, but there do need to be fewer of them a few years from now.
Okay. That makes sense. Other questions, this is, I think, about Solana from a, you know, chain perspective. I've been doing a lot of thinking on this. If we're seeing, so maybe using tokenized real world assets and stablecoins as an example, those are quite regulated, right? If you're bringing them on chain, do you need that kind of decentralized aspect that definitely Ethereum has and Solana has to the extent, or like Circle launch their own chain, Figure launch their own chain of provenance, do more of these assets just kind of accumulate almost like, you remember the article from way back?
Yeah, yeah.
Like, more almost like permissioned chains that can interact very easily with regulators since the underlying assets are regulated anyway.
Yeah.
Like, do I need that on Solana or Ethereum or what?
Right, right, right. It's a good question. I think you're going to see both models emerge. Now I'm like very ideologically aligned with the crypto ethos, so I'm here to tell you like, yes, I want full decentralization, permissionless kind of experience, but it won't surprise me to see that, you know, former model emerge and, you know, for some adoption to go there as well. I would like to think that a, you know, a fully permissionless chain is going to be one of the like big long-term winners versus, sort of like the dynamic that you described, but, we'll see how it shakes out.
Yeah. Okay, and then just lastly, in regard to yield, like yield, like I guess, you know, BitMain, Bitfish, like yields are 5.6%. How are you getting like 100%?
Yeah. So it's not all staking activity. We actually provided a pretty concrete example of something that we ran that worked really well for us in our Q3 earnings letter that I'd encourage you to check out and look at. But this is the power of being able to take portions of our treasury and actively deploy it on chain. So we might, let's say, hold a portion of our treasury in stablecoins and earn like double-digit yields in stables. We might hold, we might borrow and lend on Kamino and take advantage of like on-chain arbitrage opportunities. It's a game of just being able to squeeze out like an extra 100-200 basis points wherever you can. Now the good news with this strategy is you can adjust very quickly when things don't go your way.
So for example, during the October 10th liquidation event, the staked looping strategy that we described in our Q3 letter actually very quickly became unprofitable. So we pulled out of it very, very quickly, right? But you have to find, I'm going to say, creative, interesting things to do in DeFi that on a risk-adjusted basis makes sense, right? Because of course we could find opportunities in DeFi that I don't know how scalable this would be at our size, but like that generate 20%, 30%, 40% yields or something, but then, you know, how much risk are you taking on with that kind of strategy, right? So, you know, little bits of difference go a long way, particularly in a bear market when folks are not raising a ton of capital in this environment.
But I tend to think that when a bull market comes back and everyone's like really, I'm going to say eager to deploy capital into DATs again and everyone's, you know, running their ATMs or issuing preferred equity and things like that, that the organic yield component probably becomes just a little less important, right? Think of it in the context of our SOL per share growth the last six months. Like 10% organic yield is nice, but 71% SOL per share growth over the last six months is better.
Yeah, and there's no additional like smart contract risk or anything like that?
No, I mean there is. That is the biggest risk actually. Now what we stated is that more than 15% of our treasury is deployed on chain, across a variety of protocols, which is to say that if you had a smart contract exploit at every single one of the protocols that we deploy into across DeFi, then more than 15% of our treasury would be at risk or jeopardized, right? But again, given the diversification, you know, you might have a smart contract exploit here or there. It's not that we have like one concentration point that is really a weak point for us.
Thank you.
Yeah.
Question about, correct me if I'm wrong, but it seems like organic yield is expected to drop around 10% to 8% the year before.
Mm-hmm.
Just curious, how dependent is achieving that, you know, such a higher yield to your peers? How much of that relies from the underlying SOL on volatility?
Yeah, yeah, I see what you're saying. So like during periods of like low SOL vol, does our yield go down versus periods of high SOL vol? It's less about that actually. You know, I unfortunately can't explain too much about the Q4 dynamic. It's just, we've historically said that this 10% is a more or less good benchmark to think of on a go-forward basis. And sometimes it'll, you know, fluctuate +100 to -100, +150 to -150 basis points, just purely depending on, you know, our scale, our ability to like, really meaningfully deploy a significant chunk of our treasury into some newer projects.
I mean, one thing to keep in mind, for example, is that it's so early for Solana DeFi relative to Ethereum DeFi that us just deploying 10%, 15% of our treasury into a given protocol can like really meaningfully move the needle for a project on TVL. It's almost like, you know, how do you maintain like very elevated yields when, you know, as you scale, that's, that opportunity set kind of diminishes. We're hoping to give a little bit more color on earnings as to why we came in slightly below the 10%, but that's all I can say for now.
Cool.
All right, guys. Thank you so much.