SOL Strategies (HODL), a Toronto-listed digital asset firm focused on Solana (SOL), revealed on Tuesday that it has purchased over $18 million worth of SOL tokens through proceeds from a newly secured financing deal.
The firm acquired 122,524 SOL for $18.25 million, at an average price of $148.96 per token, as outlined in the press release. This acquisition follows the initial closing of the $20 million tranche from a $500 million convertible note agreement with ATW Partners, disclosed last month.
Following the announcement, shares of SOL Strategies dropped by 10% to around CA$2.6, extending a decline from a late-April high of over CA$3.3. Despite the short-term drop, the stock has gained nearly 80% over the past two weeks.
Leah Wald, CEO of SOL Strategies, commented, “The close of our initial $20 million tranche from the ATW facility marks a significant milestone in executing our strategy. These SOL purchases are directly aligned with our goal of expanding our validator operations and solidifying our position within the Solana ecosystem.” She also highlighted that this move strengthens the company’s three-pillar strategy of enterprise-grade validators, strategic SOL holdings, and Solana technology innovation.
Validator operations are critical in proof-of-stake blockchains like Solana, where participants secure the network and earn staking rewards. By acquiring additional SOL tokens, SOL Strategies aims to increase its validator stake, potentially boosting its influence and revenue in the Solana ecosystem.
This move reflects a growing trend among public companies applying the Michael Saylor strategy with Bitcoin (BTC), using capital markets to accumulate significant cryptocurrency holdings in hopes of delivering value to shareholders.
In a similar pivot, Janover (JNVR), a real estate fintech firm now rebranded as DeFi Development, recently shifted its focus to accumulating SOL and building a validator business on the Solana network.
