- SOL Strategies to deploy a $500M note for direct SOL staking, boosting validator control.
- Up to 85% of the SOL staking yield will be shared with ATW under a convertible note deal.
- SOL Strategies eyes Nasdaq uplisting after scaling to 3.3M SOL in validator assets.
SOL Strategies Inc. has entered into a convertible note agreement worth up to $500 million with ATW Partners, aiming to scale its Solana validator infrastructure. The capital will fund exclusive purchases of SOL tokens for staking, making it the largest Solana-focused financing structure to date.
Largest Solana Yield-Linked Credit Facility to Date
The deal includes an initial $20 million tranche, set to close by May 1, with remaining tranches subject to further conditions. According to a post by SolanaFloor, “Funds will be used exclusively to purchase and stake SOL on validators operated by the company,” making it a purpose-built, yield-generating structure. This marks a shift in how institutional capital approaches Layer-1 ecosystems.
The financing is structured as a convertible note facility, giving ATW Partners equity conversion rights based on prevailing market prices. SOL Strategies will share staking yields—up to 85%, with the investor, offering direct exposure to Solana staking returns. This structure enables instant capital deployment with blockchain-native revenue generation.
Staking-Focused Capital Strategy Signals Institutional Shift
The announcement outlines a clear strategy: scale SOL token holdings and increase validator control, with all SOL staked directly by the company. In a release by Solstrategies, the firm noted that every dollar raised is immediately accretive to its balance sheet through staking yield and validator income. The company now operates validator nodes securing over 3.3 million SOL.
The note’s interest is payable in SOL, further aligning capital costs with blockchain-native revenue. Custody of SOL assets remains under internal infrastructure, ensuring security and operational integrity. The move mirrors treasury diversification tactics previously seen with Bitcoin, adapted for the Solana ecosystem.
Nasdaq Ambitions Reflect Institutional Market Push
Besides validator growth, SOL Strategies is preparing for a potential Nasdaq uplisting to tap deeper capital markets. The firm is actively exploring this dual-listing strategy as part of its broader institutional expansion. This mirrors similar moves by Canada-based Galaxy Digital, signaling a rising trend among crypto-native firms.
Additionally, shares of SOL Strategies (CSE: HODL) rose by 7% following the announcement, reflecting investor confidence. The company, formerly known as Cypherpunk Holdings, currently holds over $40 million worth of SOL and has absorbed three validator operations in the past month.
