- Cypherpunk Holdings is renamed to SOL Strategies.
- The name change is similar to MicroStrategy.
- Invest millions of dollars in SOL and become a leading validator.
Solana has been volatile for months. Institutional confidence has taken a hit after BlackRock and other asset managers suggested there was little demand for a Solana ETF. At the same time, on-chain metrics have looked less impressive as the memecoin craze has lost steam.
Still, many are sticking with Solana because of its technology and use cases. One of them is Cypherpunk Holdings, a fund that decided to go all-in on SOL.
Cypherpunk Doubles Up to Become SOL Validator
Recent moves by fund managers suggest that institutions have not given up on Solana yet. On Thursday, September 12, Cypherpunk Holdings officially rebranded as SOL Strategies. The rebrand comes as the firm doubles its investment in Solana.
“As the company rebrands to Sol Strategies, we are positioned to capitalize on the growth potential within the Solana ecosystem,” explained Leah Wald, CEO of the company. The fund will continue to trade on the Canadian Securities Exchange (CSE) and other markets under the ticker HODL.
SOL Strategies currently holds 86,000 SOL, worth over $11 million. They stake most of these coins and even run a designated validator node on Solana. It is worth noting that as of June, the company has earned about $57,000 in staking fees on the network.
Will Cypherpunk Holdings be replaced by Solana’s MicroStrategy?
The name change of SOL Strategies is similar to that of MicroStrategy, a major Bitcoin investor. The fund, run by Bitcoin maximalist Michael Saylor, has a primary business plan of buying as much Bitcoin as possible. As Saylor explains, Bitcoin is the biggest economic opportunity right now.
Despite the inherent risks, this strategy has worked so far. MicroStrategy currently holds over 226,500 BTC, which is priced between $15,000 and $23,000. With the current Bitcoin price at $58,000, their position has been hugely profitable.
It is unclear whether Sol Strategy will replicate MicroStrategy’s success. Previously, a BlackRock executive questioned the demand for Solana among institutional investors. He explained that when it comes to cryptocurrencies, most are looking at Bitcoin.
On the other side
- Solana has seen significant growth, especially with NFTs and Mimecoins, but it also has its challenges. Technical issues, blackout and congestionIt still remains a major risk.
- Similar to BlackRock, Sygnum Bank said Solana lacks name recognition among major investors.
Why this matters
A full transition to SOL may be risky, but it shows the company’s confidence in Solana and its ecosystem.
Read more about Solana’s recent performances:
Solana Memecoin Exposure Emerges as a Major Risk to the Network
Learn more about potential US CBDCs:
Circle CEO Says US Central Bank Digital Currency Is Unlikely