SOL Strategies Inc. (CSE: HODL, OTCQX: CYFRF), a Canadian-listed firm building institutional-grade infrastructure for the Solana blockchain, has secured a $500 million convertible note facility with U.S.-based investment firm ATW Partners. The deal, signed on April 23, marks the largest capital commitment to date tied directly to Solana token staking and introduces a novel yield-sharing structure based on blockchain validator performance.
The initial tranche of the facility, valued at $20 million, is expected to close on or around May 1, with the remaining $480 million available for drawdown in future tranches. Funds from the deal are exclusively earmarked for the purchase of SOL tokens to be staked on validators operated directly by SOL Strategies. In return, ATW Partners will receive interest payments in SOL, representing up to 85% of the staking yield.
A First in Token-Based Yield Financing
This facility is the first known instance of a traditional capital markets instrument—convertible notes—being linked directly to staking yield in the Solana ecosystem. As institutional investors seek passive income from digital assets, staking-as-a-service providers like SOL Strategies are emerging as essential intermediaries.
“This is the largest financing facility of its kind in the Solana ecosystem-and the first ever directly tied to staking yield,” said Leah Wald, CEO of SOL Strategies.
“Every dollar deployed is immediately yield-generating, and accretive to both our balance sheet and our validator business. This structure is not only innovative-it is highly scalable,” Leah added.
The conversion terms allow ATW Partners to convert the notes into common shares at market rates, aligning incentives and potentially expanding their equity stake as SOL Strategies grows. The common shares issued upon conversion will be exempt from Canadian statutory hold periods under Ontario Securities Commission Rule 72-503, as the issuance occurs outside Canada.
Cohen & Company Capital Markets, a division of J.V.B. Financial Group, is acting as placement agent and will receive a 4% finder’s fee on the initial tranche.
Strategic Positioning for Nasdaq Uplisting
SOL Strategies’ latest move comes amid its broader ambitions to uplist on Nasdaq, a strategic transition that could significantly broaden its investor base. The firm is already dual-listed and gaining traction as a pure-play Solana infrastructure company, amid rising institutional interest in the blockchain.
Founded to capitalize on Solana’s high-speed, low-cost architecture, SOL Strategies has built out one of the largest networks of institutional-grade validators on the chain. The company plays a dual role: operating validators and deploying capital into yield-generating Solana-native strategies.
The deal also underscores a growing trend in digital asset finance, where blockchain-native economics such as staking yield are increasingly being embedded into structured capital instruments. As Solana continues to rebound from its post-FTX downturn, institutional capital is once again flowing into the ecosystem.
A Vote of Confidence in Solana’s Resurgence
ATW Partners’ $500 million vote of confidence comes as Solana cements its comeback. After being battered by the FTX collapse in 2022, the blockchain has steadily rebuilt market share in decentralized finance, NFT trading, and real-world asset tokenization. Recent announcements—including PayPal’s Solana-based stablecoin integration and Shopify’s Solana wallet support—have helped propel renewed interest.
For SOL Strategies, this facility cements its role as a key institutional player bridging traditional finance and decentralized infrastructure.
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Image Credits: SOL Strategies, Canva