- SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) has secured a USD $500 million convertible note facility with ATW Partners.
- The facility's initial $20 million tranche is expected to close around May 1, 2025, aimed at purchasing SOL tokens for staking.
- The innovative financial structure involves paying interest in SOL, calculated up to 85% of the staking yield.
SOL Strategies Inc. (CSE: HODL) (OTCQX: CYFRF) has announced a major financing initiative, securing a USD $500 million convertible note facility with ATW Partners. The first tranche valued at $20 million is anticipated to close around May 1, 2025. This capital is set to be exclusively allocated for purchasing SOL tokens, which will be staked on validators managed by SOL Strategies.
The financing marks a significant milestone as the largest facility of its kind within the Solana ecosystem. The innovative structure allows for interest to be paid in SOL, calculated as up to 85% of the staking yield generated by the acquired tokens. Additional funding capacity of up to USD $480 million is available through subsequent drawdowns, contingent upon certain conditions.
The convertible notes will be exchangeable into common shares of SOL Strategies at the market price prevailing prior to conversion. This aligns with the company's broader strategy, including preparations for a potential Nasdaq uplisting. As part of this initial tranche closing, SOL Strategies will pay a 4% finder's fee to Cohen & Company Capital Markets.
This strategic move reinforces SOL Strategies' position as a leader in the Solana infrastructure, as it continues to scale its validator operations and innovate within capital markets, highlighting a unique convergence of technical deployment and financial strategy.
