SOL Strategies raises $500M in convertible notes issuance to buy Solana tokens

SOL Strategies, a Canadian investment company, issued $500 million in convertible notes to buy and stake in Solana (SOL) tokens.

The $500 million issuance was made to a singular investor, ATW Partners, a New York-based investment firm. The company provides growth equity and structured capital to companies across public and private markets, a spokesperson for SOL Strategies told Cointelegraph.

A spokesperson for SOL Strategies said the company is focused on building institutional-grade infrastructure for Solana, rather than reacting to short-term price volatility.

According to an April 23 announcement, the yield generated from staking will accrue back to both SOL Strategies and ATW Partners. SOL Strategies is a publicly traded company listed on the Canadian Securities Exchange. Its share price has risen 25.3% on the day, according to Google Finance.

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“This investment represents significant institutional confidence in Solana's long-term potential,” the spokesperson said. “From an ecosystem perspective, we expect several positive impacts. First, by increasing our validator network's stake, we'll contribute to greater network security and decentralization.”

According to StockAnalysis.com, SOL Strategies posted CAD$10.62 million ($7.65 million) in revenue for 2024, a positive turnaround of CAD$15.65 million ($11.27 million) from 2023, when the company posted a loss.

Related: Debate as Solana briefly flips Ethereum in staking market cap

SOL Strategies becomes the second publicly traded company to announce a capital raise aimed at purchasing SOL. On April 21, Upexi disclosed a $100 million raise aimed at building a SOL reserve.

The DeFi Development Corporation (formerly Janover) also recently announced a $42 million raise and plans to create a Solana reserve treasury.

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