- Sol Strategies (CSE:HODL), a crypto stock focused on investing in the Solana blockchain, will undertake a C$27.5 million private placement with ParaFi Capital, a global blockchain investment firm
- ParaFi has over US$1 billion in assets under management
- Sol Strategies is a publicly traded Canadian company investing in, supporting and providing infrastructure for the Solana blockchain and ecosystem
- HODL stock has added almost 1,700 per cent since the company’s Solana-based rebranding announced in September 2024
Sol Strategies (CSE:HODL), a crypto stock focused on investing in the Solana blockchain, will undertake a C$27.5 million private placement with ParaFi Capital, a global blockchain investment firm.
ParaFi, founded in 2018, operates hedge fund and venture capital strategies with mandates focused on digital assets. The company is a trusted partner to leading institutions active in the blockchain space, having accumulated over US$1 billion in assets under management to date.
Sol Strategies will allocate the proceeds to increasing its Solana in treasury, as well as to general working capital and organic and inorganic expansion of validator operations.
The Solana cryptocurrency has appreciated by over 98 per cent year-over-year, last trading around C$270 per token, according to Coin Market Cap, representing a market capitalization of over C$130 billion. HODL stock, for its part, has added almost 1,700 per cent since the company’s Solana-based rebranding announced in September 2024.
Key financing details
The financing will involve unsecured convertible debenture units, with each unit consisting of one C$1,000 debenture and 400 warrants.
The debentures are convertible at any time into shares priced at C$2.50, as well as redeemable in cash after three years at 112 per cent of principal value, plus accrued and unpaid interest.
Each warrant allows for the purchase of one HODL share priced at C$2.50 up to five years after the financing closes.
Interest is set at 2.5 per cent per year, payable semi-annually in cash or common shares.
The financing is expected to close on or about January 16, 2025.
Leadership insights
“This financing, led by ParaFi Capital, underscores strong confidence in the potential of Sol Strategies,” Leah Wald, Sol Strategies’ chief executive officer, said in a statement. “It positions the company to strengthen its leadership in the Solana ecosystem, leveraging staking rewards to create long-term, sustainable value for our shareholders. ParaFi is the ideal capital partner given their crypto-native expertise, broad portfolio and scaled capital base.”
“ParaFi is excited to back the Sol Strategies team in their mission to build critical infrastructure for the Solana ecosystem,” added Ryan Navi, managing director at ParaFi Capital. “ParaFi’s investment will empower Sol Strategies to operate best-in-class validator services, implement a Solana treasury strategy and support the Solana network. We believe this investment will unlock new opportunities and business lines for Sol Strategies, marking a significant step toward creating greater shareholder value.”
About Sol Strategies
Sol Strategies is a publicly traded Canadian company investing in, supporting and providing infrastructure for the Solana blockchain and ecosystem.
Sol Strategies stock (CSE:HODL) is down by 1.04 per cent trading at C$2.85 per share as of 9:55 am ET.
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(Top photo of Leah Wald, Sol Strategies’ chief executive officer: Sol Strategies)
