The Canadian investment holding company Sol Strategies has secured a loan of $17.4 million to purchase Solana tokens.
? Big news! Sol Strategies (CSE: HODL) has secured a CAD $25M credit facility to accelerate our acquisition of Solana (SOL) tokens. ?This strategic move strengthens our commitment to Solana’s ecosystem and long-term growth.
? Learn more: https://t.co/3YTQZ0lMs7
— Sol Strategies (CSE: HODL | OTC: CYFRF) (@solstrategies_) January 7, 2025
The lender was Sol Strategies’ chairman, Antanas Guoga. The funds will be used for large-scale purchases of SOL to be staked.
“I am providing this capital to Sol Strategies because I firmly believe both in the corporate strategies and in Solana itself,” Guoga said.
According to the statement, C$4 million has already been drawn. The interest rate is 5% per annum, accruing daily. The loan agreement runs until 6 January 2027.
“After evaluating several options to finance strategic investments, we concluded that the terms of this loan are the most favourable for our shareholders,” added the company’s CEO, Leah Wald.
In a press release on 9 January, Sol Strategies announced a private placement of convertible bonds worth about $19 million. The buyer was the investment firm ParaFi. The proceeds will be used to purchase Solana and expand the company’s validator operations.
On September 12, 2024, the company rebranded, changing its name from Cypherpunk Holdings to Sol Strategies. The business has focused its efforts on investments in the Solana ecosystem.
As of December 31, 2024, Sol Strategies had staked more than 1.5 million SOL (about $288 million). Of that total, 142,684 SOL were the firm’s own holdings.
At the time of writing, the company’s shares on the CSE (HODL) trade at $2.33. The gain over the past three months exceeds 829%. Market capitalisation stands at $419.5 million.
In January, Solana’s developers announced a blockchain vault to protect users from the threat of quantum computing.