Cantor Fitzgerald Rates SOL-Linked Stocks as ‘Overweight’
An investment bank has initiated coverage on three publicly traded companies holding significant Solana (SOL) reserves, recommending their stocks as potential buys with potential upside ranging from 60% to 75%.
Key Recommendations
- Cantor Fitzgerald assigned a “Overweight” rating to DeFi Development Corp (DFDV), Upexi (UPXI), and SOL Strategies (HODL).
- Price targets imply upside potential of 60–75%: $45 (current: $31.06) for DFDV; $16 (current: $9.84) for UPXI; and C$4 (US$2.95) (current: C$2.48/US$1.83) for HODL.
Rationale
Cantor analysts highlight Solana’s architecture, arguing it is superior to Ethereum’s. They believe Solana avoids fragmentation issues often seen with Layer 2 scaling solutions and better retains value on-chain.
“We believe Solana treasury companies are betting the future of finance will be on-chain and that the chain of choice will be Solana,” the analysts state. They further declare Solana’s technology “meaningfully better than Ethereum across every metric” compared to other Layer-1 blockchains.
Focus on Value Beyond Stock
The investment recommendation also factors in the companies’ ability to stake SOL tokens and earn network rewards. Analysts suggest these “Solana treasury companies provide exposure to staking through organic accumulation of SOL holdings.”
In their conclusion, Cantor views these companies not merely based on their current SOL reserves, but on the potential value generation stemming from Solana usage and stakeholder rewards. They suggest these plays could follow a “Bitcoin-style corporate reserve asset” model.
Company Specifics
- DeFi Development Corp (DFDV): Cannor highlighted DFDV as its top pick, praising its management team and valuation of Solana infrastructure, specifically its operation of two validator nodes.
- Upexi (UPXI): Benefits from its US stock listing liquidity. It holds the largest current SOL reserve but does not operate validators. Current SOL exposure: Rank #1.
- SOL Strategies (HODL): Based in Canada, operates four validators and possesses several ecosystem partnerships.
