SOL Strategies Buys $18M in Solana Tokens, Kicking Off $500M Note Deal

SOL Strategies (HODL), a Toronto-listed digital asset company specializing in Solana (SOL), announced on Tuesday that it has acquired over $18 million worth of SOL tokens, funded by a recently secured financing arrangement.

The firm purchased 122,524 SOL for $18.25 million, at an average price of $148.96 per token, according to the company’s press release. This acquisition follows the $20 million closing of the initial tranche of a $500 million convertible note facility with ATW Partners, which was disclosed last month.

Following the announcement, SOL Strategies’ shares dropped by 10%, settling at approximately CA$2.6, marking a continued decline from a late-April high of over CA$3.3. Despite this, the stock has experienced a nearly 80% increase over the past two weeks.

“We’re executing our strategy exactly as planned,” said Leah Wald, CEO of SOL Strategies. “With the successful close of the initial tranche from the ATW facility, this SOL acquisition directly supports our mission to expand our validator operations and enhance our ecosystem position.” Wald emphasized that the purchase aligns with the firm’s three-pronged strategy: enterprise-grade validators, strategic SOL holdings, and Solana technology innovation.

Validators are essential in proof-of-stake blockchains like Solana, where they help secure the network and earn staking rewards. With its purchase of SOL, the company aims to increase its stake in the network’s validators, potentially boosting both its influence and revenue within the growing Solana ecosystem.

This move reflects a broader trend among public companies, following the approach of Michael Saylor with Bitcoin (BTC), leveraging capital markets to build large cryptocurrency portfolios with the goal of driving value for shareholders.

A similar move was seen last month when Janover (JNVR), a real estate fintech company now rebranded as DeFi Development, shifted its focus to accumulating SOL and establishing a validator business on the Solana network.