SOL Strategies Secures $500M Credit Facility to Boost Solana Investments, Shares Surge
Shares of SOL Strategies (HODL), a Toronto-listed digital asset firm, spiked after the company announced that it has secured up to $500 million in a convertible note facility aimed at enhancing its Solana network investments.
The newly secured capital will be directed towards acquiring additional SOL tokens and expanding the firm’s blockchain validator operations, according to a company release. Following the announcement, HODL shares surged by as much as 18%, reaching C$2.16, before settling with a 7% increase from the previous day’s close.
“This is the largest financing facility of its kind within the Solana ecosystem and the first ever linked directly to staking yield,” said Leah Wald, CEO of SOL Strategies. “Every dollar deployed will immediately generate yield, enhancing both our balance sheet and validator business. This innovative structure is also highly scalable.”
The first $20 million tranche of the facility, agreed upon with ATW Partners, a private equity investment firm based in New York, is expected to close by May 1, 2025. The interest payments on the convertible notes will be made in SOL, with up to 85% of the staking yield from SOL staked in the firm’s validators.
Additionally, SOL Strategies revealed that it is considering a potential move to the Nasdaq in the United States, which would open access to a broader investor base. This move follows the example of Galaxy Digital, another Canada-listed digital asset investment firm, which plans to debut on the Nasdaq in May 2025 after receiving regulatory approval earlier this month.
Led by Leah Wald, who co-founded digital asset manager Valkyrie Investments, SOL Strategies is known for adapting Michael Saylor’s Bitcoin treasury strategy to focus on alternative cryptocurrencies. As of last month, the firm holds 267,151 SOL tokens, valued at over $40 million based on current prices. The company also recently acquired three Solana validator businesses, bringing its total SOL staked across its validators to 3,351,617 SOL, equivalent to over $500 million in assets.
Following in SOL Strategies’ footsteps, Janover, a U.S.-listed real estate firm now rebranded as DeFi Development Corp, has recently adopted a similar strategy focused on Solana and validator operations for its crypto treasury.
