- Neptune Digital Assets has closed a value investment in the Solana cryptocurrency at a 64 per cent discount to the current market price
- The company’s 31,181 SOL tokens will be staked to earn recurring revenue
- Neptune Digital Assets specializes in Bitcoin mining, proof-of-stake mining, blockchain nodes, decentralized finance and other associated blockchain technologies
- Neptune Digital Assets has added 63.64 per cent year-over-year and 500 per cent over the past five years
Neptune Digital Assets (TSXV:NDA) has closed a value investment in the Solana cryptocurrency at a 64 per cent discount to the current market price.
Neptune Digital purchased 26,964 SOL tokens at US$64 per token, with the current market price standing at US$188 per token at the time of writing. Its total Solana balance is now 31,181 tokens, all of which are staked and earning rewards at an estimated 7.5 per cent annual yield. The tokens will be released back to the company as follows:
- 80 per cent on a monthly basis until January 2028
- 20 per cent in March 2025
Management is actively growing its staking business to secure other proof-of-stake blockchain networks, earn rewards and strengthen shareholder value generation.
Staking and Solana
Solana is a proof-of-stake blockchain network prized for its low fees and high throughput up to 65,000 transactions per second. The network is currently the fifth-largest by market capitalization in all of crypto at US$82.3 billion, according to Coin Market Cap.
The Solana network functions in a decentralized manner, meaning that no middleman is in charge of approving transactions. Instead, Solana compensates a large group of validators to approve transactions and keep the network running.
A validator’s trustworthiness is weighted by how many SOLs they attract from other investors, who stake them with the validator to earn a cut of their rewards for validating transactions. Conversely, validators can lose some of their staked SOLs should they approve transactions by bad actors that contain false or misleading information.
Crypto’s recent outsized returns
The global crypto market is currently valued at US$2.65 trillion, which is up from US$1.4 trillion in 2023 thanks to the U.S. approval of spot Bitcoin ETFs, the rise of AI technology and the growth of the crypto derivatives market, as well as the industry’s mainstream spotlight continuing to usher in retail participants curious about investing, starting businesses and benefitting from services run on blockchain networks.
Bitcoin, the largest cryptocurrency at about a US$1.4 trillion market cap, has added 159 per cent year-over-year to a little more than US$71,000 per coin, while the second-largest, Ethereum, is up by 110 per cent year-over-year, currently trading at a little more than US$3,600 per coin.
According to Crypto.com’s 2024 outlook, strong reasons for conviction in more upward price pressure are ahead, with between 125 million-325 million people estimated to become new crypto owners by year end, bringing the global total to around 900 million.
Management insights
“Our growing focus on proof-of-stake cryptocurrencies such as Solana, Polkadot and Atom aligns with our commitment to generating sustainable revenue streams in the rapidly evolving blockchain ecosystem,” Cale Moodie, Neptune Digital Assets’ chief executive officer, said in a statement. “Solana’s staking rewards, combined with its robust infrastructure, present an attractive opportunity for Neptune to generate revenue while contributing to the security and decentralization of the Solana network. This is a remarkable opportunity to grow our assets and revenues at a substantial discount to prevailing market prices.”
About Neptune Digital Assets
Neptune Digital is one of the first publicly traded blockchain companies in Canada. The company’s operations span Bitcoin mining, proof-of-stake mining, blockchain nodes, decentralized finance and other associated blockchain technologies.
Neptune Digital Assets (TSXV:NDA) last traded at C$0.36 per share. The stock has added 63.64 per cent year-over-year and 500 per cent over the past five years.
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