According to a Thursday announcement, Sol Strategies (ticker: CYFRF, HODL.CN) is raising C$27.5 million (about $19 million) through debt financing to purchase more SOL tokens and further invest in Solana staking infrastructure. there is. This is the second multi-million dollar investment strategy the company has announced this week.
In particular, the Toronto-based company, formerly known as Cypherpunk Holdings, raised funds through a private sale of “unsecured convertible debt units,” a type of long-term debt instrument that can be converted into company equity, to ParaFi Capital. We are procuring.
Sol Strategies’ CD consists of one debenture with a principal amount of C$1,000 and 400 warrants. The latter can be converted into shares at an exercise price of C$2.50 sometime before the fifth anniversary of the funding close, expected on January 16.
The CD also offers a 2.5% annual return, which can be paid semiannually in cash or common stock.
This is Sol Strategies’ latest bid to raise capital to invest in the Solana ecosystem. When the company hired CEO Leah Wald last year, it decided to double down on Solana.
“ParaFi’s investment will enable Sol Strategies to operate industry-leading verification services, implement SOL financial strategies, and support the Solana network,” Ryan Navi, managing director at hedge fund ParaFi Capital, said in a statement.
Sol Strategies has grown to become one of the largest Solana stakers, staking over 1.5 million SOL tokens (worth approximately C$450 million) as of mid-December. This includes more than 140,000 SOLs owned by the company.
Just as investing in Bitcoin miners is a way to gain exposure without holding actual BTC, Sol Strategies says its focus on “leveraging staking rewards and investment opportunities in Solana-based projects” will “allow shareholders to indirectly “This is a way to participate in mining.” Decentralized Financial Environment.”
On Monday, the company announced that it had secured a C$25 million credit line to fund its staking expansion. In December, Wald told The Block that the company: look at the list On NASDAQ.
Disclaimer: The Block is an independent media outlet delivering news, research and data. As of November 2023, Foresight Ventures is a majority investor in The Block. Foresight Ventures invests in other companies in the cryptocurrency space. Cryptocurrency exchange Bitget is an anchor LP of Foresight Ventures. The Block continues to operate independently to provide objective, impactful and timely information about the cryptocurrency industry. Below are our current financial disclosures.
© 2024 The Block. All rights reserved. This article is provided for informational purposes only. It is not provided or intended to be used as legal, tax, investment, financial or other advice.