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Hassan Shittu
Journalist
Hassan Shittu
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Sol Strategies, a Canadian holding company investing in the Solana blockchain, accessed $4 million from an amended CAD $25 million credit facility agreement to fund its strategic Solana investments.
Sol Strategies Expands Solana Investments with CAD $4 Million Drawdown
According to the announcement, the CAD $25 million unsecured revolving credit facility, amended on January 6, 2025, is provided by Antanas Guoga, Chairman and Director of Sol Strategies.
The facility allows the company to draw funds for Solana token purchases to support its operations and ecosystem investments.
The $4 million drawdown will be directed toward large-scale token acquisitions, which Sol Strategies plans to deploy across the Solana ecosystem.
This includes supporting decentralized finance protocols, validator operations, and liquidity provision for new Solana-based projects.
The drawn amounts will accrue 5% interest per annum, payable by maturity, unless the lender demands early repayment.
“I’m making this capital available to Sol Strategies because of how deeply I believe in both the corporate strategies and Solana itself.,” said Antanas Guoga, Chairman of Sol Strategies.
Leah Wald, CEO of Sol Strategies, added, “Our staking strategy is highly successful, and we are confident that our expanded position in Solana will generate substantial returns for our shareholders.”
This financing qualifies as a “related party transaction” under Canadian securities law because Antanas Guoga serves as the company’s director and majority shareholder.
However, the company has deemed the terms fair and reasonable based on market comparisons.
Due to the facility’s size relative to Sol Strategies’ market capitalization, the company is exempt from certain reporting and approval requirements under Canadian law.
Sol Strategies Stock Drops 2.6% but Maintains Massive 6-Month Gains
Shares of Sol Strategies (HODL.CN) dropped 2.6% yesterday, closing at $2.999. Despite the decline, the stock has delivered a 2,500% return over the past six months.
This surge began in December after the acquisition of three additional Solana validators, following the November purchase of four validators from Cogent Crypto.
Sol Strategies has seen substantial growth since its rebranding from Cypherpunk Holdings on September 12, 2024.
Its stock price climbed from $0.16 in September to its current level, delivering over 1,700% returns to investors.
Over the past three months, the stock has gained 1,000%, outpacing Solana’s (SOL) own 50% rise.
The company’s expansion into the Solana ecosystem has driven this growth.
As of H2 2024, it stakes 948,242 SOL, valued at $202.9 million, and holds 142,031 SOL, worth $30.4 million as of December 11.
Looking ahead, Sol Strategies is preparing for additional developments in 2025, including a potential Nasdaq listing.
