Sol Strategies Inc. (CSE: Hodl, OTCQX: CYFRF), a listed firm listed in Canada for grade-grade infrastructure for Solana Blockchain, earned a $ 500 million convertible note facility with US-based investment partners ATW partners. The deal, signed on April 23, marked the biggest promise of capital to the present tied directly to Solana token Staking and introduced a novel that shares the produce based on the performance of the blockchain validator.
The initial tranche of the facility, worth $ 20 million, is expected to close or around May 1, with the remaining $ 480 million available for drawdown in future branches. Funds from the deal are exclusively marked for the purchase of Sol Tokens to be stacked with validators operated directly by Sol’s techniques. In return, ATW partners will receive interest payments to the Sol, which represents up to 85% of staking yield.
A first to token -based financing
This facility is the first known example of a traditional capital market instrument – notes that can be linked – linked directly to the staking yield in the Solana ecosystem. While institutional investors are looking for passive income from digital properties, staking-as-a-service providers such as SOL techniques are emerging as important mediators.
“This is the largest financing facility of its type in the Solana ecosystem-and the first ever directly tied to the staking harvest,” said Lea Wald, CEO of Sol Strategies.
“Every dollar deployed immediately generates yield, and is acclative on both our balance sheet and our Validator business. This structure is not just innovative-it is highly measured,” Leah added.
Conversion terms allow ATW partners to convert notes to common shares in market rates, aligning incentives and potential expansion of their equity stake as Sol techniques grow. Common shares released in return will be avoided from the Canadian statutory periods under Ontario Securities Commission Rule 72-503, as the release occurs outside of Canada.
Cohen & Company Capital MarketsA division of the JVB Financial Group, acts as a placement agent and will receive a 4% finder fee in the initial tranche.
Strategic positioning for NASDAQ revolt
The latest Sol strategies move is in the midst of its broader ambitions to list Nasdaq, a strategic move that can expand its investor base. The firm is dual-list and obtains traction as a purely-playing company of Solana’s infrastructure, amid increased institutional interest in the blockchain.
Established to capitalize the high-speed, cheap architecture of Solana, the Sol strategies built one of the largest networks of grade-institutional validators in the chain. The company plays a dual role: the operations of validators and the removal of capital in the techniques that make up Solana-roof.
The deal also emphasizes a growing financial trend of digital assets, where economic blockchain-natives such as staking produce are increasingly embedded in structured capital instruments. As Solana continued to bounce from the fall of the post-FTX, the institutional capital was flowing into the ecosystem again.
A vote of trust in Solana’s resurrection
ATW Partners’ $ 500 million votes of confidence came during its Solana cements. After the FTX’s collapse was battered in 2022, the blockchain continued to rebuild the market sharing with decentralized finances, NFT trade, and real-world asset tokenization. Recent announcements-including Solana-based Solana based on PayPal and Shopify’s Wallet support-will help prevent updated interest.
For Sol strategies, this facility plays the role as a major player of institutional bridging traditional finance and decentralized infrastructure.
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Image credits: Sol’s strategies, Canva