SOL Strategies surged 25% after announcing a $500M funding deal with ATW Partners, which will be used to buy and stake Solana (SOL) tokens on their own validator nodes.
Interest on the funding will be paid in SOL, using up to 85% of staking rewards, while ATW can convert the notes into shares—no SEC or Canadian registration required.
The company, formerly Cypherpunk Holdings, is doubling down on the Solana ecosystem amid Solana’s recent 28% price rally and growing institutional interest, including Galaxy Digital swapping over $100M in ETH for SOL.
So here’s the scoop—SOL Strategies (CSE: HODL) just pulled a bold move, and investors are clearly here for it. The stock jumped 25.27% on Wednesday, landing at CAD 2.28 ($1.64). Not bad for a mid-week rally, right?
What’s behind the sudden spike? One word: Solana. But it’s not just hype—there’s actual firepower here.
$500 Million Bet on SOL—No, Seriously
SOL Strategies locked in a $500 million convertible note deal with ATW Partners. Yeah, half a billion. The first $20 million gets deployed by May 1, with the rest unlocked based on… conditions (not super specific yet).
But here’s where it gets real spicy: they’re not just buying SOL tokens. They’re staking all of it on their own validator nodes. The twist? They’re using staking rewards—up to 85% of ‘em—to pay interest to ATW. It’s a smart loop of crypto economics feeding traditional finance.
“Interest on the Notes will be paid in SOL, calculated as up to 85% of the staking yield,” said Leah Wald, CEO of SOL Strategies. Yep—no cash interest, just yield.
A Convertible Note… With a Side of SOL
There’s more. The notes aren’t just your average crypto-backed thing. ATW can convert them into SOL Strategies shares at market rate. Plus, there’s no SEC or Canadian registration hassle (per the exemptions). That’s a lot of legal red tape skipped. Oh—and Cohen & Company is walking away with 4% on the first $20M chunk for arranging the deal.
From Cypherpunk to SOL Maxi
If SOL Strategies sounds familiar, you’re not wrong. They used to be Cypherpunk Holdings, but rebranded last year to go all in on the Solana ecosystem. As of March, they already held 267,151 SOL… and this deal could potentially double, triple, or who-knows-what that number.
And they’re not the only ones bullish on SOL. Even Galaxy Digitalreportedly swapped $100M+ of ETH for SOL recently, per Lookonchain. That’s a loud move.
Solana’s On Fire (Again)
Meanwhile, Solana itself is on a tear—up 28% in two weeks, now sitting comfortably above $150. It’s attracting everything from memecoins to DeFi dapps, and institutional interest is clearly piling in.
Oh, and about that Nasdaq uplisting SOL Strategies mentioned? Don’t hold your breath just yet. The company’s being cautious, saying there’s no guarantee the full $500M gets used. But let’s be honest—investors don’t seem to mind. The market reaction says it all.
