SOL Strategies Rises After Securing Up to $500M Credit Line for Solana Investment

SOL Strategies Secures $500M Convertible Note Facility to Expand Solana Investments, Shares Jump

SOL Strategies (HODL), a Toronto-listed digital asset company, saw its shares surge after announcing the securing of a $500 million convertible note facility to accelerate its investments in the Solana network.

The company plans to use the capital to increase its holdings of SOL tokens and expand its blockchain validator business. Following the announcement, HODL shares jumped by up to 18%, reaching C$2.16 before retreating slightly to still post a 7% increase from the previous day’s closing price.

“This represents the largest financing of its kind in the Solana ecosystem, and it’s the first to be directly tied to staking yield,” said Leah Wald, CEO of SOL Strategies, in a statement. “Every dollar invested will immediately generate yield and contribute to both our balance sheet and validator operations. This approach is not only innovative but scalable.”

The first tranche of $20 million from the deal, negotiated with ATW Partners, a private equity firm in New York, is set to close by May 1. Interest payments on the convertible notes will be made in SOL and will be calculated based on up to 85% of the staking yield from SOL tokens staked within the company’s validators.

Additionally, SOL Strategies is considering a potential listing on the Nasdaq, aiming to tap into a wider pool of investors. This move aligns with the path of Galaxy Digital, a Canada-listed digital asset investment firm, which is preparing to debut on the Nasdaq in May 2025 following regulatory approval earlier this month.

Leah Wald, co-founder of Valkyrie Investments, leads SOL Strategies, which has been at the forefront of adapting Michael Saylor’s bitcoin treasury strategy to alternative cryptocurrencies. As of last month, the company holds 267,151 SOL, valued at over $40 million based on current market prices. The firm also recently acquired three Solana validator businesses, bringing the total amount of SOL staked across its validators to 3,351,617 SOL, worth more than $500 million.

In a similar move, Janover, a U.S.-listed real estate firm now rebranded as DeFi Development Corp, has adopted a similar strategy focusing on Solana and its validator operations, inspired by SOL Strategies’ success.