SOL Strategies secures up to $500 million in convertible note financing to buy more SOL
Blockchain editor
According to SolanaFloor, SOL Strategies, a Canadian stock exchange listed company, has received a convertible note financing of up to $500 million from ATW Partners, the largest financing of its kind in the Solana ecosystem. The funds will be used exclusively to purchase SOL and stake on the validator nodes operated by the company. The first $20 million payment is scheduled to be completed on May 1, and the staking income will be shared by both parties.
The following is the details of the official website press release:
Toronto, Ontario —(Newsfile Corp. — April 23, 2025) — SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) (formerly Cypherpunk Holdings Inc, “SOL Strategies” or the “Company”), a Canadian public company dedicated to investing in and providing infrastructure for the Solana blockchain ecosystem, today announced that it has entered into an independent transaction agreement with ATW Partners (the “Investor”) to issue up to $500 million in convertible notes (the “Notes”) on April 23, 2025 (the “Agreement”). The Agreement marks a first in the digital asset financing space: capital is used exclusively to purchase SOL tokens, which will be staked on validators directly operated by SOL Strategies, with the proceeds shared by both parties.
Under the Facility, the Company will issue an initial tranche of Notes in an aggregate principal amount of $20 million (the “First Closing”) with the option to draw additional amounts of up to $480 million upon the satisfaction of certain conditions. The First Closing is expected to occur on or about May 1, 2025, subject to customary closing conditions.
In this novel structure, interest on the Notes will be payable in SOL, calculated as 85% of the Staking Returns generated by SOL earned through the Facility and staked by SOL Strategies.
This announcement solidifies SOL Strategies’ leadership in the Solana infrastructure space as the Company continues to scale its Solana validator operations and combine capital markets innovation with deep technology deployments while actively preparing for a Nasdaq listing as part of its broader cross-listing strategy.
Leah Wald, CEO of SOL Strategies, said: "This is the largest funding facility of its kind in the Solana ecosystem and the first to be directly tied to staking returns. By securing up to $500 million in strategic capital, we are doubling down on our belief in Solana and our commitment to becoming the leading institutional staking platform. Every dollar invested generates immediate returns and is accretive to our balance sheet and validator business. This structure is not only innovative but also highly scalable."
The Notes will be convertible into Common Shares of the Company at the prevailing market price on the day prior to conversion, subject to the terms and conditions of the Notes and the Arrangement. The Notes and the related Common Shares will be offered outside of Canada pursuant to Ontario Securities Commission Rule 72-503, Offerings Outside Canada, and accordingly, the Common Shares issued upon conversion of the Notes will not be subject to any statutory hold period under applicable Canadian securities laws.
The securities described herein have not been registered and will not be registered under the registration requirements of the United States securities laws or any state. This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.
Cohen & Company Capital Markets, a subsidiary of JVB Financial Group, LLC, will serve as the placement agent for Sol Strategies. A finder’s fee of 4% of the gross proceeds from the initial closing will be paid to the placement agent in cash.
