Sol Strategies Inc. Announces CAD $27.5 Million Private Placement Fully Funded by ParaFi Capital

Canadian Web3 infrastructure company Sol Strategies Inc. has announced a CAD $27.5 million private placement fully funded by ParaFi Capital. The funds will be used to accumulate more SOL tokens, expand validator operations, and cover other business expenses.

Sol Strategies is a Canadian Web3 infrastructure company that operates a validator node service for the Solana (SOL) blockchain. The company is also engaged in managing a treasury of SOL tokens, which generates staking rewards for Sol Strategies and its shareholders.

The private placement announced on Friday consists of convertible debenture units, each comprising a CAD $1,000 debenture and 400 warrants. The debentures carry a 2.5% annual interest rate, payable semi-annually in cash or shares, and can be converted into company shares at CAD $2.50 each. The warrants allow holders to purchase a single share of the company at a rate of CAD $2.50 per share within five years. After three years, the debentures can be redeemed for 112% of their value plus interest. Shares from conversions or warrants will have a four-month trading restriction. The deal is expected to close by January 16, 2025, pending standard conditions.

Sol Strategies trades on the Canadian Securities Exchange under the ticker “HODL” and on the OTC market as “CYFRF.” The company recently finalized its acquisition of three blockchain validators and related assets from Orangefin Ventures, with plans to maintain Orangefin’s high standards while using its resources to expand within the Solana ecosystem.

Founded in 2018, ParaFi Capital is a crypto-native investment firm that manages a portfolio of digital assets and Web3 companies. The firm is known for its early investments in Coinbase, BlockFi, Dapper Labs, and Yuga Labs.

In recent news, ParaFi Capital led a $50 million Series B funding round for Web3 social media platform Rally. The round also included participation from Seven Seven Six, IOSG Ventures, HashKey, and Dapper Labs.