Solana’s recent price correction has rippled through the crypto treasury landscape, inflicting substantial paper losses on firms heavily invested in SOL. One of the hardest hit was Forward Industries (FORD), which saw the value of its Solana holdings plunge from $1.65 billion to $1.20 billion — a staggering 24% unrealized loss. This collapse follows SOL’s sharp decline to around $150, down nearly 33% from FORD’s average acquisition price of $232.
But the falling price is only part of the story. A more pressing concern is the steep drop in the market-to-net-asset-value ratio (mNAV) across Solana-focused digital asset treasuries (DATs). The mNAV is a key metric that compares the market value of a firm’s stock to its net crypto holdings. When this ratio dips below 1, it signals that the market values the firm less than the sum of its assets — a bearish indicator that can hamper capital-raising efforts and shake investor confidence.
As it stands, nearly all major SOL DATs are now trading with an mNAV below 1, with the sole exception being SOLAI (SLAI). This persistent discount in mNAV could prompt some firms to liquidate portions of their crypto reserves in an attempt to stabilize equity performance and restore investor trust. If sustained, such forced selling could generate downward pressure on SOL prices, compounding the bearish cycle.
Despite the financial stress, treasury holdings of Solana reached a historic milestone in October, topping 16 million SOL for the first time. These holdings accounted for approximately 2.8% of the total digital asset treasury market — a figure that, while modest compared to Bitcoin and Ethereum, underscores the growing institutional interest in Solana.
The bulk of this accumulation occurred between April and October 2025, a period marked by steady price appreciation from $130 to over $220. This trend reflected increasing demand from treasury managers eyeing SOL as a strategic long-term asset. However, the current downturn has cast a shadow over those bullish bets, raising questions about the sustainability of such exposure in volatile markets.
Other notable SOL DATs, including DeFi Corporations (DFDV), are also grappling with double-digit paper losses. While these losses remain unrealized, the pressure is mounting as investors reevaluate risk amid broader market uncertainty.
Adding to the growing caution, top traders on Binance have slashed their long positions in SOL from 71% to 65% in the past two weeks. This shift mirrors the sentiment observed during the October 10 flash crash, when longs dropped to 63% before rebounding. The current decline in long exposure suggests traders are bracing for further downside, possibly toward the next critical support level at $120.
The broader implications of this selloff are significant. If mNAV continues to hover below parity, the likelihood of a coordinated selloff across SOL treasury firms increases. Such a scenario could not only deepen SOL’s price woes but also impact investor sentiment across the broader altcoin market.
In this context, SOL’s support at $150 has become a psychological anchor. A breakdown below this level could trigger a cascade of stop-loss orders and further mechanical selling, accelerating the descent toward $120. Conversely, a strong rebound from current levels could restore some confidence and stabilize the mNAV ratios, offering a temporary reprieve to distressed treasury holders.
Beyond the market mechanics, the situation also draws attention to the evolving role of digital asset treasuries in crypto market dynamics. These entities, which hold large volumes of tokens on corporate balance sheets, now play a significant role in price stability, liquidity, and investor sentiment. Their actions — whether accumulation or liquidation — can exert meaningful influence on token valuations.
For investors and analysts, monitoring the mNAV metric and treasury accumulation patterns may provide early warning signals of systemic stress or opportunity. In particular, a sustained mNAV below 1 across a sector as concentrated as SOL DATs could be a red flag for broader volatility.
Looking ahead, the key questions are whether Solana can find a bottom around the $150 mark and if treasury firms will be forced into asset sales to protect balance sheets. A reversal in price momentum could quickly shift the narrative, especially if paired with renewed institutional interest or macroeconomic tailwinds favoring risk assets.
In the meantime, market participants are advised to stay cautious. While the long-term fundamentals of Solana remain strong in the eyes of many, the short-term volatility and financial stress among key holders suggest that downside risks remain elevated. For those with exposure to SOL or related assets, diligent risk management and close attention to treasury activity could be critical in navigating the current turbulence.