SOL Strategies (HODL), the Toronto-listed digital asset firm dedicated to advancing the Solana (SOL) ecosystem, announced a significant acquisition on Tuesday, securing over $18 million worth of SOL tokens through proceeds from a newly finalized financing arrangement.
The company successfully purchased 122,524 SOL tokens for $18.25 million, which translates to an average price of $148.96 per token, as detailed in their press release. This acquisition comes on the heels of a $20 million closure of an initial tranche related to a broader $500 million convertible note facility established with investment firm ATW Partners last month.
Following the announcement, SOL Strategies’ shares dipped 10%, settling around CA$2.6 during early trading on Tuesday, marking a continued decline from last month’s peak of over CA$3.3. However, the stock has still seen a remarkable increase of nearly 80% over the past two weeks.
CEO Leah Wald emphasized the strategic nature of this acquisition, stating, “With the closing of our initial $20 million tranche from the ATW facility, we’re executing exactly as promised – strategically acquiring SOL to expand our validator operations and ecosystem position.” This strategic acquisition aligns with their three-pillar approach focusing on enterprise-grade validators, significant SOL holdings, and innovation within the Solana technology landscape.
Validator operations are essential infrastructure within proof-of-stake blockchains like Solana, where participants contribute to network security and earn staking rewards. By amassing SOL tokens, SOL Strategies enhances its validator stake, which could amplify both its influence and revenue within the rapidly evolving Solana ecosystem.
This move reflects a burgeoning trend among publicly traded companies mirroring Michael Saylor’s approach with Bitcoin (BTC)—leveraging capital markets to amass substantial cryptocurrency holdings with the aim of delivering value to shareholders.
Additionally, in a noteworthy development, the real estate fintech firm Janover (JNVR), recently rebranded as DeFi Development, has pivoted to focus on accumulating SOL and establishing a validator business on the Solana network.
Read more: DeFi Development Plans to Raise $1 Billion to Buy More Solana
Disclaimer: This article, or parts of it, was generated with assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
