Solana Treasury Losses Surge, Sparking Potential Sell-Off Risks as mNAV Declines

• SOL treasury firms now face mNAV below 1, signaling potential distress and challenges in raising capital.

• Despite losses, aggregate SOL holdings hit a record 16 million tokens in October, representing 2.8% of the crypto treasury market.

• Market data shows long positions on Binance dropping to 65%, echoing caution seen during the October 10 flash crash with longs at 63%.

Solana SOL treasury losses escalate amid price crash: Firms report 24% unrealized hits, mNAV dips below 1. Explore risks and record holdings in this analysis. Stay informed on crypto trends—read more now. (152 characters)

What Are Solana SOL Treasury Losses and Their Impact?

Solana SOL treasury losses refer to the unrealized declines in value experienced by firms holding SOL as part of their digital asset treasuries, exacerbated by a recent price drop. For instance, Forward Industries saw its holdings value fall from $1.65 billion to $1.20 billion, resulting in a 24% unrealized loss against an average purchase price of $232. This situation affects multiple SOL digital asset treasuries (DATs), including DeFi Corporations, highlighting broader vulnerabilities in the sector amid market volatility.

Such losses not only erode asset values but also complicate corporate strategies reliant on crypto holdings for balance sheets.

How Does the mNAV Collapse Affect Solana Treasury Firms?

The market-to-net-asset-value (mNAV) metric tracks how companies trade relative to their crypto assets, where a value below 1 indicates distress. As of recent data from Blockworks, mNAV has fallen below 1 for all SOL DAT players except SOLAI, making capital raises difficult and potentially signaling bearish sentiment to investors. This collapse could pressure firms to liquidate holdings to stabilize stock prices, as prolonged sub-1 readings heighten financial risks.

According to analysis by Blockworks, a discount mNAV often deters new investments, while premiums support bullish outlooks. Short sentences underscore the urgency: Firms must monitor this closely. Expert insights from industry trackers emphasize proactive balance sheet management to mitigate ongoing pressures.

Frequently Asked Questions

What Caused the Recent Surge in Solana SOL Treasury Losses?

The surge in Solana SOL treasury losses was primarily triggered by a sharp SOL price crash, with the token dropping 33% from the average purchase price of $232 held by major firms. Top holders like Forward Industries reported holdings devaluing from $1.65 billion to $1.20 billion, leading to 24% unrealized losses, while others like DeFi Corporations faced similar double-digit declines, per Blockworks data.

Will Solana Treasury Firms Sell Holdings Due to mNAV Issues?

Solana treasury firms may consider selling holdings if mNAV remains below 1, as this could force actions to boost stock values and restore investor confidence. Historical patterns from events like the October 10 flash crash show similar caution, but current aggregate holdings at 16 million SOL suggest resilience unless distress deepens further, according to market observers.

Key Takeaways

• Unrealized Losses Escalate: SOL treasury firms, including Forward Industries and DeFi Corporations, now report up to 24% losses after SOL’s price fell 33% from $232 averages, impacting over 16 million tokens held.
• mNAV Distress Signal: All major SOL DATs except SOLAI trade below 1 mNAV, per Blockworks, raising risks of forced sales to stabilize finances amid capital-raising hurdles.
• Record Holdings Amid Caution: Despite stresses, SOL treasuries hit 16 million tokens in October—2.8% of the market—while Binance longs trimmed to 65%, mirroring flash crash levels for potential support at $120-$150.

SOL Treasury Situation Gets Worse

On top of the losses, the mNAV (market-to-net-asset-value, a tracker for the multiples at which a company trades relative to its crypto assets.

A discount mNAV makes raising capital difficult and may be construed as bearish, while a premium reading bodes well for bulls. 

As of writing, mNAV has collapsed below 1 for all SOL DAT players except SOLAI (SLAI). 

Source: Blockworks

This could evolve into a distress and a risk if mNAV stays below 1 for too long, potentially forcing players to sell their crypto holdings to boost their stocks and mNAV. 

SOL Treasury Holdings Hit Record High

Despite the market stress, the total treasury holdings crossed 16 million SOL for the first time in October. Compared to Bitcoin [BTC] and Ethereum [ETH] treasuries, SOL DATs had a 2.8% market share. 

The steady accumulation from April was followed by a sharp uptick in price from $130 to over $220. In other words, demand from treasury firms had been steady in H2 2025. 

Source: Blockworks

Meanwhile, the top players on the Binance exchange had trimmed long positions from 71% to 65% over the past two weeks amid bearish momentum.

The cautious positioning was similar to the levels seen during the October 10 flash crash. At that time, longs dropped to 63% before rebounding steadily later. 

Source: CoinGlass

It remains to be seen whether SOL will mark a bottom at $150 or slide lower to the next key support at $120. 

Several Solana [SOL] treasury firms recorded massive unrealized losses following the recent SOL price crash. One of the top SOL holders, Forward Industries (FORD), for example, saw its unrealized loss increase to 24% after a sharp drop in its holdings value from $1.65 billion to $1.20 billion. Additionally, SOL price was down 33% from the firm’s average purchase price of $232. Other top SOL DATs (digital asset treasuries), such as DeFi Corporations (DFDV), also had double-digit unrealized losses.

Conclusion

Solana SOL treasury losses underscore the volatility risks in digital asset treasuries, with mNAV collapses and 24% unrealized hits affecting key players like Forward Industries and DeFi Corporations. Holding a record 16 million SOL—2.8% of the market—these firms demonstrate resilience amid bearish signals from Binance data. As the sector navigates potential sell-offs, investors should track support levels at $120-$150 for signs of recovery, staying vigilant on Solana treasury developments to inform future strategies.