SOL Strategies Inc. has secured a financing facility of up to $500 million through a convertible note agreement with ATW Partners, the company announced Wednesday.
The publicly traded firm, which focuses on investments and infrastructure for the Solana (SOL) blockchain, said the funds will be used exclusively to purchase SOL tokens and support the company’s validator operations.
The first tranche of the facility will provide $20 million in capital, with additional drawdowns of up to $480 million available pending certain conditions.
The initial closing is expected to occur on or around May 1, 2025, according to a release shared with crypto.news.
This news reflects that of DeFi Development Corp and Upexi, both of which are planning to invest in a company’s strategy related to its Solana-based treasury.
Staked Solana
This marks a novel approach in digital asset financing. Under the terms of the deal, SOL Strategies will stake the acquired SOL on its own validators, and the resulting staking yield, up to 85%, will be used to pay interest to the lender.
The notes are convertible into common shares of SOL Strategies at market price, and are being issued under an exemption that does not require registration under Canadian or U.S. securities laws.
The facility structure connects capital markets directly to staking economics, a model that may offer a blueprint for future institutional investments in proof-of-stake networks.
Cohen & Company Capital Markets is serving as placement agent for the deal and will receive a 4% finder’s fee on the proceeds of the initial closing.
While SOL Strategies is preparing for a potential Nasdaq uplisting, the company noted that future tranches of the facility remain subject to undisclosed conditions, and there is no guarantee the full $500 million will be utilized.
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