- Sol Strategies secures CAD 25M credit to invest in the Solana ecosystem.
- Over 1.5 million SOL tokens staked, valued at CAD 450 million.
- The credit facility offers 5% interest and expires in 2027.
Sol Strategies, a Canadian holding company focused on the Solana blockchain, has secured a CAD 25 million unsecured revolving credit facility. This significant funding will be used for large-scale Solana (SOL) token purchases to enhance the company’s staking operations and acquisitions. As of late 2024, Sol Strategies has staked over 1.5 million SOL tokens, valued at approximately CAD 450 million, with 140,000 SOL owned directly by the company.
One of the Largest Solana Commitments to Date
This Credit Facility Agreement, effective as of 6 January 2025, between the Company and its Chairman Antanas Guoga, is the second amendment to that certain agreement dated October 2024. The Facility provides the Company with access to CAD 25 million in unsecured revolving credit available until 6 January 2027. To this day, the company has drawn down CAD 4 million and plans to use the remainder to buy more Solana tokens. This is part of their strategy in supporting staking operations and acquisitions. Hence, it is one of the most serious public commitments to Solana that has been announced so far.
The Sol Strategies will deploy the tokens in core areas in the Solana ecosystem, which include DeFi protocols, validator operations, and provision of liquidity to the newly launched projects based on Solana. While doing so, with a view to establishing itself as a leading player in the fast-growing ecosystem at Solana, it would simultaneously enhance its holdings of the token and the scale of operations.
Related-Party Transaction and Market Confidence
The agreement between Sol Strategies and its Chairman, Antanas Guoga, is a related-party transaction. The terms of the credit facility were at arm’s length and, consequently, at prevailing market rates and conditions. The interest rate for the drawn funds is 5% per annum. The drawn funds’ repayment is due on the maturity date in 2027 or earlier upon any earlier repayment demand from the lender, provided that the company complies with such demand.
Because it was a related-party transaction, the company chose not to file a material change report. The transaction is less than 25% of the company’s market capitalization. Sol Strategies believes this structure provides the most shareholder-friendly terms to the company. While allowing it to scale its presence in the Solana ecosystem.
The CEO, Leah Wald, was so confident that an expanded position in Solana would set up shareholders for significant returns. He said in the press release:
After evaluating multiple financing options for this strategic investment, we determined that the terms offered through this facility provided the most favorable structure for our shareholders. Our staking strategy is tremendously successful, and we are confident that our expanded position in Solana will generate substantial returns for our shareholders while supporting the continued growth of the Solana ecosystem.
