Sol Strategies Inc. Secures CAD $27.5M Investment from ParaFi Capital to Expand Validator Operations and Increase SOL Holdings

This strategic funding will propel the company's growth by expanding its validator operations, increasing its SOL holdings, and enhancing Solana's ecosystem.

Sol Strategies Inc. (CSE: HODL) announces a CAD $27.5M private placement with ParaFi Capital to support the expansion of SOL holdings and validator operations in the Solana ecosystem.

ParaFi Capital, a leading venture capital firm in blockchain and decentralized finance, will participate in the private placement through a convertible debenture unit. Each unit comprises a CAD $1,000 debenture and 400 warrants. The debentures will bear an annual interest rate of 2.5%, payable semi-annually in cash or shares at the company’s election. The principal amount of the debentures is convertible into company shares at a price of CAD $2.50 per share.

The warrants will entitle the holder to purchase additional shares at the same price for a period of five years. After three years, the company will have the option to redeem the debentures at 112% of their outstanding principal amount, plus interest accrued. Any shares issued upon conversion of the debentures or exercise of the warrants will be subject to a four-month trading restriction.

The proceeds from the private placement will be used by the company to purchase additional SOL tokens, expand its validator operations and cover general business expenses. The investment is part of a broader strategy to expand the company’s presence in the Solana ecosystem and drive shareholder value.

“This funding validates Sol Strategies’ potential in the Solana ecosystem and collaboration with ParaFi will enable the company to leverage staking rewards to generate long term value for our shareholders. ParaFi’s extensive capital base and deep expertise make them an ideal partner for our objectives,” said Leah Wald, CEO of Sol Strategies.

“This investment is critical to building out the essential infrastructure for the Solana ecosystem. Sol Strategies’ role in providing top-tier validator services and managing a SOL treasury will be enabled by this investment. We believe this collaboration will create new opportunities for the company and drive shareholder value,” said Ryan Navi, Managing Director at ParaFi Capital.

The closing of the funding is subject to the satisfaction of customary closing conditions and the receipt of all necessary regulatory approvals, including the approval of the Canadian Securities Exchange. The private placement is expected to close by January 16, 2025.