Solmate Stock Plummets After Cathie Wood-Backed Crypto Pivot

Cathie Wood-backed crypto stock Solmate (SLMT) has plummeted over 93% in the past year, leaving investors wondering if the crypto treasury model is a losing strategy. The company's pivot to become a Solana treasury, backed by ARK Invest and the Solana Foundation, was meant to follow in the footsteps of Michael Saylor's successful Strategy (NASDAQ: MSTR). However, the move has backfired, with Solmate's stock price dropping from $249 to around $4.

As part of its pivot, Solmate unloaded its football portfolio, disbanding teams in Mongolia and Mozambique and selling its majority stake in Italian second-tier club Juve Stabia. The company's reliance on crypto has led to a decline in value, with Solana itself falling 50% over the past year.

The sector rout has hit many crypto-hoarding companies hard, leaving investors questioning their worth. In Solmate's case, RBCH, a RockawayX affiliate and largest outside backer, has filed a derivative suit alleging self-dealing by the company's board of directors.