Hey, everybody. Thank you for joining me today. It is my pleasure to introduce us to Dan Kang, Chief Strategy Officer of DeFi Development Corp. Now I'm gonna turn over the stage to him.
All right. Thank you so much for having me.
Thanks.
It's funny, my original presentation got totally canned. I'll tell you why. The original presentation, I actually tried to put an image of my toddler falling off of the sofa because, for those of us who have kids, and I always start off my talks, my keynotes with some kind of story about my kids. It's what happens when you're a new dad. You'll know that your toddlers are kinda like drunken pandas anywhere that they go. They just can't be trusted near furniture, near power outlets, near stoves. They're in that, like, very experimental era.
I tried to throw an image on here. My wife was like, "Please don't do that." I realized, I was like, "Yeah, it's probably, I don't wanna go and dox my kids at such a young age." I asked AI to make an image of, like, a toddler falling off a sofa. It flagged me for, like, inappropriate content, that didn't quite pan out either. The lecture I actually give my kids when they're going and trying these, quote-unquote, dangerous things is, I've tried to, like, condition myself as a good millennial parent to go and say, "I love that experiment for you," when it's something that is, I don't know, not too harmful, right? They're just trying to climb a ladder or explore the top shelf of the bookshelf or the toy shelf.
When they're doing other dangerous things, like trying to surf on the edge of the sofa, I say, "I don't love that experiment for you," which is my gentle parent way of saying like, "Please do not do that." One of the things that I do love about having kids is you get to see how curious they are about the world, how they explore things, and do things that I think us, as adults, have been sterilized away from doing.
Why do I mention all this? I mention this because despite the lecture I'm going to give on DATS and Solana and pitching you on how awesome Solana is and why we're trying to buy as much of it, the core underlying message at the end of this is that DeFi Development Corp is a company filled with lots of experiments, some of which have panned out pretty nicely, some of which haven't, but that have cost us very little.
I think that culture of experimentation is actually really, really important, and I'm looking forward to talking with shareholders and the public a lot more about what these experiments have actually yielded for our business. Without further ado, boring part out of the way, this presentation will contain forward-looking statements. Actual results may differ materially. I would refer you to our most recent filings with the SEC, including our Form 10-K, for a full disclosure of said risks. I'm gonna break this up into four sections: The Rise of DATS, Chapter one. Chapter two, DFDV is Built to Amplify. Amplify what? We'll find out. Chapter three, Solana to $10,000.
Chapter four, a little bit about our team and why we are different than the other Solana DATS that are out there in the space. Let's talk DATS, digital asset treasury companies. A funny thing started happening in August of 2020 where someone by the name of Michael Saylor, out of, as he would say, desperation, decided he was gonna put Bitcoin on his balance sheet. Many followed suit, but the interesting dynamic here is actually looking at MicroStrategy, sorry, MicroStrategy's performance since they kicked off their Bitcoin treasury strategy, which is Bitcoin is up about 800% and MicroStrategy is up over 1,500% just for holding Bitcoin. That begs the question. Why would this happen? We're gonna dive a little bit into this in a moment here. Who is DeFi Development Corp.? Who are we?
We are the first Solana digital asset treasury company to kick off a treasury strategy in the U.S. We're actually the first non-Bitcoin treasury company to kick off in the U.S., and if you've heard me give this talk before, you'll know what I'm about to say, which is everyone and their mother decided to launch a treasury strategy after we did, but we were the very first altcoin one. We sit on about $218 million worth of Solana today, and we have grown our SOL per share, our North Star, by over 100% on a trailing 12-month basis when you sit just at NAV today. A lot of firsts for our company. We'll emphasize a lot of these and why they matter later on.
In addition to being the first Solana digital asset treasury company, we were the first to tokenize our equity, the very first in the U.S. to run our own validator infrastructure, and the very first to deploy our treasury on-chain. The market has, I think, rewarded us a bit for this. We were actually the number one performing crypto stock of 2025, the only Solana digital asset treasury company to post positive equity returns since kicking off our treasury strategy, and we have certainly outperformed the broader DAT peer set since kicking off our treasury strategy. Again, virtue of being first. Let's talk about why DATS outperform. Why did Strategy outperform Bitcoin over the last few years? Why are we up over 700% when Solana has materially underperformed to that figure?
If you're an ordinary user of crypto, you want to invest in crypto, you've gotta go through a crypto exchange, maybe go to your Robinhood account. If you want amplified exposure to this underlying asset class, whether it's Bitcoin or Solana or Ethereum. These are all the hurdles you have to deal with. You've got to pay lots of fees. There isn't really a good way to gain amplified exposure without taking on a lot of risk, right? Of course, you can do margin trading, but very good way to get wiped out. If you actually look at another alternative, ETFs, which weren't present a year ago for Solana, but certainly are today, it's really not that much better. You do get price tracking, but you have fees charged on top of it.
You don't really get the optimal yield that you could get on the broader Solana network. We'll talk about what that means in a little bit. The best way that I can describe the difference between a digital asset treasury company like DFDV and an ETF is a metaphor that I have used quite frequently over the last year, which is the life raft versus speedboat metaphor. Buying an ETF or buying spot is like sitting on a life raft on the river. The river's the price action. Wherever the river takes you're going to go. Buying a DAT is like buying a speedboat on the river. You still get the benefit of the current and the price action. If you're in a speedboat, you can speed up, you can navigate past obstacles, you can slow down if you need to.
An investor's job when looking for amplified Solana exposure in this metaphor is to find the fastest speedboat possible, but also one that is not going to sink when the waters get a little bit choppy. Why can we provide amplified exposure? How can we provide amplified exposure? First is the MSTR playbook itself, pioneered by Michael Saylor, right? Which is to say that anytime that we are trading at a premium to our underlying crypto holdings, we can issue equity to go and purchase more crypto, which is accretive to crypto per share. We can go and issue convertible debt like we have historically. We can also potentially issue preferred equity. We don't have preferred equity trading yet today, but it is a top priority for us.
There's also a whole host of things that we can do on an organic basis that separate us as a business. We're going to talk a little bit about what some of those things are. Needless to say, at DeFi Dev Corp., we really do lean in on these strategic advantages, particularly because our entire team comes from Kraken. We have lots of crypto expertise in this company. It's not our first rodeo in crypto. It's not our second one. As I tell people, our CEO, Joseph Onorati, was actually CEO of the first Canadian Bitcoin exchange back in 2013. He was employee number 20-something at Kraken. We've been in the space for a long time. We know how to optimize capital structure, to, I'm going to say, acquire crypto prudently without blowing up the operation.
Again, we hold about $2.2 million SOL today. We have the lowest average cost of any Solana digital asset treasury company in-market. I guess it's now worth talking about what even is Solana? There's a lot of people who don't know, and that's okay, but we think it's going to $10K versus roughly a $94 price today. What is it? Solana is simply a global network of computers that processes transactions and apps instantly for almost no cost. The best way I can have you think about Solana is to think of it as infrastructure. Think of it as the piping that actually moves value. The tagline that I'll have you walk away with, if you only remember one thing about Solana from this presentation, it's that if Bitcoin stores value, Solana actually moves it.
All right, I'll say that again. If Bitcoin stores value, Solana actually moves it. Now, I could dive into the tech and how it moves it the way that it does, I think that would sort of be losing the plot. What I'm going to focus on instead are the outcomes that Solana actually drives towards. All right? The magical experiences that it actually enables, rather than diving into the tech and all the cool things that my crypto buddies and I certainly can chat about all day would probably put most folks to sleep here. Why is Solana best-in-class financial infrastructure? Well, it's really fast, it's really cheap, it's highly accessible, it scales really well. Let's talk about each of these elements in order. How fast is Solana?
Well, I put transactions per second on here for Bitcoin, Ethereum, Base, Mastercard, Visa, and you can see this icon at the very top is the Solana network at 100,000 transactions per second. Bitcoin's an excellent store of value, but at 7 transactions per second, this is kind of like taking a brick of gold to your local Starbucks and trying to get a latte with a brick of gold. You would get laughed out of the store. There's no way to actually do it. Even though Bitcoin is a fantastic store of value, and we are all lovers of Bitcoin at DeFi Development Corp., as far as utility is concerned, at 7 TPS, it is extremely limited in the applications that you can actually build on top of it.
You enter Ethereum, which at 15- 30 transactions per second is not really that much better. For all the talk that Ethereum gets of being incredibly reliable and having 100% uptime, this 15- 30 TPS is a severe blocker to actually scaling real financial applications. At the very top, skip the middle, again, is Solana at 100,000, which exceeds that of Visa and Mastercard. You have a network here, a crypto network, that can actually be used to build really high-powered financial transactions. Transaction finality on the network itself is measured in milliseconds. Post an upgrade that's coming to the network, it'll be a blink of an eye. Talked about how fast Solana is. Let's talk about how scalable it is. Well, Solana did $33 billion transactions in 2025.
That is more than every other blockchain you see on this screen here combined. Those transactions generated $1.4 billion in fees. You do the math, you'll say, "Hey, you know what? That's actually pretty cheap for a network." That average fee is still skewed up by whales. What I would tell you is that the median transaction fee on the Solana network today is $0.0005. Think about the applications that that unlocks. Think about the ability to conduct cross-border transactions, the remittances volumes that are now possible with something where you're only paying fractions of a cent and it settles in the blink of an eye. In terms of accessibility, Solana actually led all blockchains last year with the number of new wallets created, again, more than every other chain combined at $1 billion.
Recently, we actually put out a model. We call it SOL in the Digital City. I won't bore you with all the details. If you do want to check it out, you can go to defidevcorp.com/solmodel. We tried to value SOL itself, SOL being the token of the Solana network. If I would have you think about SOL in any sort of metaphor, if Solana is infrastructure, you can think of Solana as like an electric grid. SOL is like the electricity that runs through that grid. It powers all the homes, powers your TV, etc. SOL is the thing that you need to actually do stuff on the network. SOL is the beneficiary of these three mega trends that are converging all at once.
If anyone's interested in Solana, DFDV, these are the three trends that I would have you watch over the next 12- 24 months and even beyond. Tokenization, stablecoins, and agentic AI, all TAMs in the hundreds of trillions of dollars. Let's talk about these. Tokenization, the idea that the world's assets should simply move on-chain. Why? Well, why do I need Tesla on-chain? Why do I need Palantir on-chain? I can access it just fine as it is with my existing infrastructure. That is a very Western-centric view. Yes, all of us here have no problems with access. Your average customer, interested investor in Brazil, in Nigeria, doesn't have access to the same opportunities that we all do here, and tokenization unlocks this.
Now you only need access to a mobile device, the internet, in order to have access to the same financial opportunities and price exposure and asset exposure that we all do here. The example I give here is imagine a student in India can buy U.S. stock without a Schwab account. Interesting for all the folks in here is actually some of the other things that tokenization unlocks. We hear a lot about access, but we don't really hear too much about composability, which for me is the thing I'm most excited about. This idea that financial assets can actually become building blocks or pieces of Legos that you can stack on top of one another. The example I give here is one that's close to my heart as a former buy-side analyst.
Imagine that you could bet that Google was going to beat earnings but maybe miss on cloud revenue. That'd be a bad bet these days. Maybe you parlay your view with a view on Amazon. Maybe you say, "I think Google's gonna beat, Amazon's gonna beat, and Snap is going to miss." These are things that are only possible with the infrastructure and composability of tokenization. Again, when you think about all the elements that make Solana uniquely positioned as financial infrastructure, best-in-class financial infrastructure, fast, cheap, accessible, highly scalable, it makes sense that tokenization would effectively be one of the biggest tailwinds for the Solana network today. If you look at forecasts, I threw one on here from BCG, it's estimated that 10% of global GDP will move on to tokenized market over the course of the next few years.
What are some early proof points? Well, Solana did $3 billion in tokenized equity volume just six months post-launch. Actually, 94% of all of tokenized equity spot volume has settled on the Solana network. Why? Because it's fast, it's cheap, and it scales with the actual volume number. The early signs are incredibly encouraging. stable coins. This seems to be the narrative that, like, most folks on Wall Street are paying attention to, and rightfully so. The asset class itself has grown by a magnitude of 10x over the last few years. Depending on the forecast you look at, $3 trillion, $5 trillion, our expectation, $10 trillion asset class by the year 2030. Again, Solana's positioned to be a natural beneficiary.
You may have heard the tagline last summer from my dear friend Tom Lee that stablecoins are the ChatGPT of crypto. I would take that statement a step further to say, if stablecoins are the ChatGPT of crypto, then Solana is NVIDIA. It is the best-in-class infrastructure provider for this class. What's the evidence? Stablecoin TVL on Solana has grown by an 83% CAGR over the last five years. Solana recently did $900 billion of average monthly transfer volume. This is over the last three months. If you're bullish on stables, it would make sense that you're bullish the rails that those stables are gonna be ported onto. All right, last mega trend, agentic AI. I actually really love this chart.
Few months ago, I remember I had to go shopping for a Mac mini, and they were completely sold out, but this is when the old OpenClaw hype was really taking off. The reason why I like this chart is because it shows you that AI really is writing exponential curves. It's scaling at a rate that most of us probably can't even comprehend. You need only look at the recent stock charts for SanDisk and Micron to understand what I'm talking about. This right here tells it all. This is scaling at an unprecedented rate. Agents are frankly doing very real things already. They're highly productive. They help with coding. They help with automated tasks that you don't want to deal with.
I'm reminded of a colleague of mine who is effectively using an AI agent to file all of his expenses and book his travel as recently as a couple months ago, and this is only scaling. What's the problem that these agents face today? Traditional financial rails kinda suck for agents. You have a lot of KYC-gated accounts. There's lots of expensive per transaction costs. Maybe it's okay for one or two agents to go and use Stripe or something to that effect, but if you really wanted to get a whole army or, I'm gonna say, swarm of agents doing things very rapidly, traditional rails don't work too well. Crypto rails do, and the early signs are actually incredibly promising for Solana. If you looked at the X402 protocol developed by Coinbase and others, agentic payments are really taking off.
We developed a model, proprietary model at DFDV that looks at the amount of SOL demand that will occur as the number of agents scales. The simple idea here is that agents will want to transact on chain because crypto rails are permissionless, software-based rails that are easier for agents to access. You ask yourself, how much of agentic finance, how much of agentic commerce is going to move on to crypto rails? How much of that share is going to be captured by Solana, again, the fastest, cheapest, most performant chain in existence today. Again, early sign, 65% market share on the X402 protocol according to the Solana Foundation through March.
I often get asked the question outside of the three mega trends, like, "Okay, that all sounds great, but when is institutional adoption really going to happen?" I tell people the institutions are already here. Western Union just launched a stablecoin built on the Solana network. You have the advent of ETFs that launched last fall. JP Morgan actually issued a commercial paper transaction on Solana earlier this year. Of course, DATS, like DeFi Development Corp, are putting Solana on their balance sheet, a sure sign that it is a treasury-grade asset, highly productive, and a better use of capital than simply holding dollars. How do we think about Solana's price target? There's a couple ways. I like presenting this top-down view, but if you wanted our bottoms-up view, you could look at defidevcorp.com/solmodel.
One way you could look at it is to say, "All right, Bitcoin's $1.6 trillion. Solana's market cap today is roughly 4% that of Bitcoin, much earlier in its life cycle." How do I compare it to all these traditional asset classes? I actually think this view really works well for store value assets, not so much for, like, a growth tech infrastructure kind of play, the way Solana is characterized. The way we really think about this is that Solana's TAM is all of global value transfer. If we're talking about a network with best-in-class rails for moving money, then it kinda makes sense that it would take a slice of all of money moving. According to McKinsey, it was about a $2.4 trillion revenue TAM. We assume Solana can achieve 8% market share.
Apply a 30x multiple, you get to roughly $10,000 SOL to USD price target. Again, this is just one methodology we have for valuing SOL. Our other methodology, which looks at those three major demand drivers that I just spoke to and sizes each of those opportunities, also arrives at a similar 10K price target. What's interesting is even if you got here, you would still be at a fraction of all of these other traditional asset classes as they stand today. I love this slide because one of the things about DATS, and we're gonna get into DFDV in a second here, is that you can't just buy an asset that's going to go up. I mean, yes, that is the most important thing.
The other important thing is that the asset should be highly volatile because DATS effectively serve as refineries for highly volatile assets. There are some institutions who simply cannot hold an 80 vol asset, even if it's going to appreciate at 60% a year, right? We like to think of ourselves at DFDV as taking this highly volatile unit of energy, Solana, and refining it into different flavors of volatility that fit different investor profiles, and we'll talk about this in a second. Historically, this is what we've done. We've offered convertible debt. We have our common equity. We hope to have a preferred equity offering out to market.
Again, all with the idea that you can dampen the volatility profile and offer some kind of return profile accordingly relative to the underlying itself. All right. Let's talk DFDV. Faster, better, most obsessed. I often get asked, like, "What makes your DAT different?" These are the qualities that I think really differentiate DeFi Development Corp and make us stand out among the crowd. Again, who are we? This is a team that's been in crypto for quite some time. Our CEO, as I mentioned, has been a CEO of the first Canadian Bitcoin exchange back in 2013. Our COO has been operating Solana validators for many years. Our CFO, John Han, has lived through enough crypto cycles that he's actually lost his hair, as you can see in this photo. We also have really great depth of TradFi expertise.
Our CFO comes from Goldman. I did eight years in long-short equity myself. Parker White, our CEO, also has extensive buy-side experience. Our board also brings this similar blend. We've got a good mix of, I'm gonna say, TradFi veterans as well as crypto native experts on our board. Let's talk our validators. This is one of the things that I think makes DeFi Dev Corp. different from other DATs that are in market. It's certainly different than the Bitcoin DATs that have historically defined the digital asset treasury space. You can think of a validator, if you will, as the equivalent of a Bitcoin miner. I say it in very heavy quotation marks because the key difference is that the unit economics do not suck. They are substantially better.
Every incremental token that gets staked to our validators effectively represents 100% incremental free cash flow margin, and that the marginal cost for getting additional staked to our validators is de minimis. What this does is it creates a natural operating line or operating revenue business for us that is synergistic with our treasury strategy. The best way to describe this is, as our SOL treasury grows, we stake more to our validators. Those validators spit out more SOL, which then grows our treasury. Wash, rinse, repeat. This is really at the heart, I would say, of a lot of the organic yield generation that we have put up over the course of the last 12 months. The beauty of doing this ourselves is that we're not paying costs to a third-party provider.
If we wanted to go and stake on Coinbase, it's likely we'd be getting a yield of roughly 4%, because again, they shave off 20%-30% of the economics and keep it for themselves, due to them providing the service. By staking ourselves, we generate anywhere from 7%, 7.5%. Again, 300, 350 basis points delta over outsourcing it to someone like Coinbase. Again, pretty significant on a treasury that is north of $200 million today. We don't just stake. We also do things on chain. Solana has this very rich ecosystem with lots of financial applications on it, and we deploy some of our treasury on it. Our last disclosure was that more than 15% of our treasury is deployed on chain today across various protocols.
The example we gave in our Q3 shareholder letter, I think, very clearly identifies an on-chain strategy that worked really, really well for us. I would urge everyone to check out that letter. Needless to say, I think this is important for several reasons. As our SOL treasury grows, we can support more of the Solana ecosystem, which in turn flows more yield back to DeFi Development Corp, and again, creates a really nice organic virtuous cycle, and in many ways frees us from the recursive capital trap that has plagued many Bitcoin treasury companies. Another way of saying that, we don't have to raise a single cent of capital ever again, and our treasury could keep growing as a result of us deploying our capital on chain. What's a concrete example of this? We have something called DFDV SOL.
DFDV SOL is a liquid staking token. I won't go into all the details around what liquid staking is, but happy to take it in the Q&A. Needless to say, the key point behind this is that you can think of this as a Lego brick that is integrated across Solana decentralized finance that allows us to generate ongoing revenue and participate in the ecosystem on an ongoing basis. Here's a chart that shows a little bit of that contrast. If you were just sitting on Solana and not staking it, well, that's value destructive. You'd be earning 0%. You stake with Coinbase, you're getting roughly 4%. Stake with some of the other leading providers in the ecosystem, maybe 7%, 8% if you're lucky.
On an all-in basis with our staking activities and our on-chain deployment, historically, we have generated anywhere from 8%- 11.4% annualized average organic yield. That is a leading figure among not just Solana DATS, but all DATS in general. I like throwing this slide in, one, because it's got this really cool photo of Joseph chatting with someone. He seems to be really into the conversation. We really are the most shareholder-obsessed DAT in the world. What does this mean exactly? Number one, I believe we have the highest percentage ownership among all DAT executive teams at owning roughly 20% of the company, and nobody has sold a single share. Number two, we really do pride ourselves on investor communications. We are frequently engaging with institutional and retail investors.
Our website, defidevcorp.com, has virtually every single metric that you would need to assess our capital structure, from the bridge from common shares outstanding all the way to fully diluted shares outstanding, the warrants in our cap structure, the convertible debt in our cap structure, the strike prices, a calculator if you want to go and check it out that stress tests our guidance assumptions. This has all been very well-received by both retail and institutional investors alike. I would highly encourage you guys to go and check it out. Of course, our equity is very closely linked to the price of SOL. I put a very banker-friendly mNAV versus SOL price table in our investor presentation. You can go and stress test that yourself. DFDV is basically like SOL on steroids. It is amplified exposure to the underlying asset class itself.
I started my talk with a talk on I love and I don't love that experiment for you with my toddlers. I'm going to end with this theme of experimentation, which is to say, as I look ahead over the next six months and even into 2027 and beyond, I expect that our company is going to keep doing things that strategy and the rest of the digital asset treasury space have not yet done. One, it is a way that you differentiate, but two, the ability to take asymmetric bets, to flex our crypto expertise and know where the asymmetric opportunities are, that is something a lot of folks can't replicate. Early signs have been promising. Apyx, a dividend-backed stablecoin protocol that DFDV invested in, went from $0 to just under $400 million of TVL over the last 10, 11 weeks.
The natural question, of course, is what have these various experiments yielded for you? Right? What has your on-chain deployment really yielded for SOL per share growth? What has your treasury accelerator program, where you help launch other Solana DATS internationally, yielded for your SOL per share growth? What is Apyx going to yield for your SOL per share growth? We don't have anything to say on this today, but my hope is going forward we'll be able to more clearly outline a lot of this for shareholders, so stay tuned. With that, happy to take any audience questions the last five minutes we have here.
We had Securitize in here earlier, and they were talking about, you know, their partnership with New York Stock Exchange. It came up that the NYSE was looking to use, maybe their own chain or launch a permission private chain for tokenization. I guess, how do you view some of the more traditional incumbents going down that route versus using something like a Solana? What are you guys hearing on that?
Yeah, so the question is, for those listening on the webcast, what my view is on private chains versus, you know, the open permissionless chains. Number one, I don't think it's as easy as folks think it is, right? I think, like, it's very easy and tempting to just say, like, "Oh, Visa's just gonna go and start their own blockchain, and everything's gonna run on Visa rails," right? Mastercard's gonna go start their own blockchain. I think, again, having the requisite amount of crypto expertise to go and do that and build it in a way that is fully functional and on par with decentralized infrastructure in terms of speed and cost is going to be a little bit of a trickier deal.
Even if folks do manage to figure it out, again, I think there's something to be said about, and this is my crypto ideology coming out, the idea of having truly open and permissionless rails where anyone can actually, you know, participate and access the assets that are onto that chain. I do think it's gonna be a multi-chain world as well, right? There won't be just, like, one chain to rule them all. You know, naturally, as more assets move on-chain, I think you'll see Solana emerge as a winner. Ethereum will, of course, take some TVL and share as well from traditional asset classes. Naturally, I think the question is 10, 15 years from now, as more assets have moved on-chain, who are the long-term winners going to be among the various L1s?
That probably becomes a more interesting question. Right now, it's kind of like trying to decide, you know, in the very earliest days of cloud, you know, if AWS was gonna beat Azure versus GCP or anything like that. Obviously, all three of those businesses are massively bigger today. You're, you know, you have some good sense today of where the market shares have shaken up and sort of moved over the last couple years. I still think we're a far cry from that. I think everyone's just going to massively rerate in terms of actual dollars moving on-chain first.
Okay. Then, my other one would just be on mNAV premiums like we saw, I guess it was about a year ago when they were kind of peaking. Do you think the DATS will ever kind of get back there? Then also, do you guys need to start to see or do you expect M&A in this space? Is that around the corner?
Yeah, yeah. Two questions for the webcast. One, mNAV, are they gonna come back? Two, M&A. I'll take the first question. My colleagues know I love talking about mNAV. mNAV, for those who are unfamiliar, is the idea that you would pay $200,000 for a checking account that had $100,000 in it. You would say, "Why would I ever do that? That seems like the most irrational thing ever." The idea is that the equity value or the market caps of these various digital asset treasury companies often traded at a premium to their underlying crypto holdings. It was frankly the biggest piece of pushback investors typically had on the DATS, which is why wouldn't I just buy the underlying?
I'm paying something for something that's vastly more expensive. What I used to tell people is. You're not paying for the crypto that exists on a company's balance sheet today. You're paying for that company to keep acquiring more crypto in the future. The mNAV premium, in my mind, some investors will say it has to do with access, but if it was purely access to the underlying, you would've seen MicroStrategy's premium to NAV compress when Bitcoin ETF started trading. Some folks will say, you know, it has to do with tax efficiencies and things like that, but I think the true mNAV premium comes from MicroStrategy's ability to quickly acquire more of the underlying over time. In that chart that I showed, where MicroStrategy's common equity has actually outperformed Bitcoin by a magnitude of 1.5x.
That's because their Bitcoin per share has gone up by a magnitude of over 5x over the last, you know, almost six years. Do I think mNAV premiums will return? Yes, once crypto prices start acting better, number one. Number two, I do think you need to see a shaking out of the number of players in this space, which gets a little bit to your question. Because if mNAV is a reflection of DATS ability to quickly acquire more of the underlying, well, obviously, a big toolkit in that is raising capital. If you have more players chasing the same pool of capital, naturally you'd expect mNAVs to compress, which is the dynamic that occurred basically in the back half of 2025.
As far as consolidation, it sounds so nice on paper, but I think it's gonna be exceptionally difficult in practice. You know, the example I often think of is like, well, if one DATS is trading at 1.1 or 1.2 and another DATS trading at 0.8, you know, the one that's trading at a premium or that's bigger is just going to, you know, offer at NAV or maybe a slight premium to where they're currently trading today. Everyone wins, and we all get to go home. You have to bake in paying out existing management teams. You have to bake in legal fees, the banker fees. Often asset management agreements have to get canceled.
I think that has one direct implication, which is you actually need to see the mNAV spreads widen between the potential acquirers and the acquirees, the targets. You then have to ask yourself, well, what incentive does the seller have to really go and sell their business if they're sitting on a stack of Ethereum or Solana or, you know, some other proof of stake asset, and they're just earning ongoing recurring revenue from that asset base? Probably very little, right? It's a tricky dynamic. I don't know if, like, management incentives are all necessarily there to go and sell, especially with everyone more or less at a discount.
That said, I do think you'll see some combinations, because I think folks will eventually realize that it's better to have one, two, three winners and, you know, teams splitting the pies that way versus all trying to duke it out when there are seven players all competing in one asset, all competing for the same asset base, and no one's really gaining that much traction in that kind of world.
Thank you.
Any other questions? Yep.
The slide on the $10,000 price on it.
Yeah.
You have-
Yeah
30x the multiple. I guess, how would you justify that? Are you assuming that you said eight- 10 to make up some growth from there or?
Yeah, 30x multiple. Much lower than the historical multiples you've seen on blockchains, right? They're like 80x, 90x or something like that. Now, as the network matures, you're gonna see some multiple compression, right? You can't assume that it's going to be at 80x or 90x as you go out into perpetuity.
That 8% is out.
Yeah. Very much, very much further out. Then, of course, you ask yourself, like, you know, "Do I need to discount that back?" Everything like that. I would say the 30x multiple, you'd almost think of it like an earnings multiple in that, like, there's no cost to the network, right? Like, all of that is, you know, revenue, cash flow, whatever you want to think of it. I actually don't like the cash flow analogy for the digital commodity of a network like Solana, which is why we published an alternate model to arrive at our $10K price target. Highly recommend you check that out because I think that one may be a more, for folks who prefer a more bottoms-up approach, probably a more comforting way to arrive at the price target. All right, everyone.
Thank you so much for the time.