Sol Strategies (tickers: CYFRF, HODL.CN) is raising C$27.5 million (about $19 million) via debt financing to buy more SOL tokens and invest further in Solana staking infrastructure, according to an announcement on Thursday. This is the second multi-million investment strategy the firm announced this week.
In particular, the Toronto-based firm formerly known as Cypherpunk Holdings is raising funds through a private sale of “unsecured convertible debenture units,” a type of long-term debt instrument that can be converted into company equity, to ParaFi Capital.
Sol Strategies’ CDs consist of one debenture with a principal amount of C$1,000 and 400 warrants. The latter can be converted into shares at a C$2.50 strike price at any point before the fifth anniversary of the closing of financing, which is expected to be Jan. 16.
Additionally, the CDs offer a yield of 2.5% per annum, which can be paid semi-annually in cash or common shares.
This is Sol Strategies' latest bid to raise capital to invest in the Solana ecosystem. Last year, when the firm hired CEO Leah Wald, the company decided to double down on Solana.
“ParaFi's investment will empower Sol Strategies to operate best-in-class validator services, implement a SOL treasury strategy, and support the Solana network,” Ryan Navi, managing director of the hedge fund ParaFi Capital, said in a statement.
Sol Strategies has grown to become one of the largest Solana stakers, having staked over 1.5 million SOL tokens (worth about C$450 million) as of mid-December. This includes over 140,000 SOL owned by the firm.
In a similar way that investing in bitcoin miners is a way to gain exposure without holding physical BTC, Sol Strategies says its focus on “leveraging investment opportunities in staking rewards and Solana-based projects” is a way for “shareholders to indirectly participate in the decentralized finance landscape.”
On Monday, the firm announced it had taken out a C$25 million credit line to help finance its staking expansion. In December, Wald told The Block the firm was looking to list on the Nasdaq.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2024 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
