Following the announcement of a major funding deal with ATW Partners, shares of SOL Strategies (CSE: HODL) surged by 25.27%, closing Wednesday at CAD 2.28 ($1.64), according to Google Finance.
The buzz? A massive $500 million convertible note facility that SOL Strategies says will be used entirely to buy and stake Solana (SOL) tokens. The first $20 million will be deployed by May 1, with the rest—up to $480 million—available under certain conditions.
This isn’t a casual crypto move. SOL Strategies plans to stake all acquired SOL on its own validator nodes, using staking rewards, potentially as high as 85%, to pay interest to ATW. It’s a unique financing model that ties capital markets directly to blockchain yield.
“In this novel structure, interest on the Notes will be paid in SOL, calculated as up to 85% of the staking yield generated by SOL acquired through the facility and staked by SOL Strategies,” said SOL Strategies CEO Leah Wald.
The convertible notes come with a twist: ATW can convert them into SOL Strategies shares at market price, and thanks to regulatory exemptions, there’s no SEC or Canadian registration headache. Cohen & Company is acting as the placement agent and will earn 4% on the first $20 million tranche.
SOL Strategies, formerly known as Cypherpunk Holdings, rebranded last year to shift focus entirely onto the Solana ecosystem. As of March, it held 267,151 SOL tokens, and the new deal could dramatically grow that position.
Even Galaxy Digital, a heavyweight in crypto finance, was recently spotted swapping over $100 million worth of ETH for SOL, according to on-chain data from Lookonchain.
Meanwhile, Solana itself has been on a tear, rising 28% over the past two weeks and trading above $150. Its low fees and high throughput continue to attract memecoins, DeFi projects, and now, major institutional investors.
While SOL Strategies hinted at a future Nasdaq uplisting, the company made it clear there’s no guarantee the full $500 million will be used. But for now, the market’s reaction is loud and clear: this Solana-heavy strategy is making waves.
Also Read: ARK Invest Takes First Direct Stake in Solana via ETF
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