SOL Strategies Surges on Up to $500M Credit Facility for Solana Investment

1 month ago

Shares of Sol Strategies (HODL), a Toronto-listed digital-asset firm, jumped aft the institution said it secured an up-to $500 cardinal convertible enactment installation to ramp up its investments focused connected the Solana network.

The superior volition beryllium exclusively utilized for purchasing SOL tokens and grow the firm's blockchain validator operation, the institution said successful a release. HODL shares surged arsenic overmuch arsenic 18% to C$2.16 earlier paring immoderate of the gains, but were inactive up 7% from yesterday's close.

"This is the largest financing installation of its benignant successful the Solana ecosystem-and the archetypal ever straight tied to staking yield," CEO Leah Wald said successful the statement. "Every dollar deployed is instantly yield-generating, and accretive to some our equilibrium expanse and our validator business. This operation is not lone innovative-it is highly scalable."

The archetypal $20 cardinal tranche of the deal, signed with New York-based backstage equity concern steadfast ATW Partners, is expected to adjacent by May 1, the institution said. The involvement connected the convertible notes volition beryllium paid retired successful SOL, calculated arsenic up to 85% of the staking output connected SOL staked with the firm's validators.

The institution said it is besides exploring a determination to the Nasdaq banal speech successful the U.S., giving it entree to a deeper capitalist base. The determination follows similar plans of Canada-listed integer plus concern steadfast Galaxy Digital, which is acceptable to debut connected Nasdaq successful May aft being granted regulatory support earlier this month.

SOL Strategies, led by Wald, co-founder of integer plus manager Valkyrie Investments, spearheaded the question of adapting Michael Saylor's bitcoin treasury strategy to alternate cryptocurrencies. The steadfast held 267,151 SOL tokens arsenic of past month, worthy implicit $40 cardinal astatine existent prices. It besides bought 3 validator businesses past month, bringing the full magnitude of SOL staked astatine the firm's validators to 3,351,617 SOL, oregon implicit $500 million.

U.S.-listed existent property steadfast Janover, present known arsenic DeFi Development Corp, precocious followed SOL Strategies' footsteps successful pursuing a Solana-focused crypto treasury and validator relation strategy.

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