Canadian-based investment firm SOL Strategies (formerly Cypherpunk Holdings) has secured up to $500 million for the exclusive purchase of the crypto asset Solana (SOL). Once executed, it will mark the largest financing of its kind in the blockchain ecosystem.
The $500M Capital Raise
The funding was raised via a convertible note offering in partnership with another New York-based investment management firm, ATW Partners. The signed agreement facilitates an initial $20 million, expected to close around May 1, 2025. Up to $480 million is available in subsequent drawdowns, subject to customary conditions.
Upon a successful purchase, the firm will stake SOL coins through its validator pool and share the staking yield with its partner. Interestingly, 85% of the stake rewards will be paid as interest on the notes. Notably, tying debt service to staking yield could serve as a blueprint for similar financing in other blockchain ecosystems.
Commenting on the initiative, the CEO of SOL Strategies, Leah Wald, said:
“By securing up to half a billion dollars in strategic capital, we are doubling down on our conviction in Solana and our commitment to being the leading institutional staking platform. Every dollar deployed is immediately yield-generating and accretive to both our balance sheet and our validator business. This structure is not only innovative-it is highly scalable.”
The excitement in its community of investors was notable. According to Google Finance data, SOL Strategies’ stock, HODL, listed on the Canadian Stock Exchange (CSE), surged by 25% following the announcement.
Meanwhile, SOL Strategies noted in its official press release that it is actively preparing for a potential listing on Nasdaq as part of its broader cross-listing strategy. It plans to leverage its strengthened balance sheet and committed capital to meet U.S. exchange requirements.
Other Firms Invest in Solana
Astra Fintech recently raised a $100 million fund to fuel growth across the Solana ecosystem, with a focus on Asia’s blockchain markets. The fund will invest capital in high-potential builders and early-stage decentralized apps based in South Korea. Astra will also integrate its Banana Pay solution to bridge on-chain and off-chain finance.
Meanwhile, DeFi Development Corporation (formerly Janover) has rebranded after being taken over by former Kraken executives and has transformed into an investment firm focused on crypto assets. The firm has executed multiple SOL purchases, including its most recent buy of 65,305 SOL ($9.9 million), acquired via BitGo’s OTC desk at below-spot prices.
