What you need to know:

• SOL Strategies has launched a convertible note facility worth as much as $500 million to boost its investments in Solana.
• Following this announcement, the firm’s shares rose by up to 18%, eventually settling at a 7% increase.
• As of last month, SOL Strategies owned over 26,000 SOL tokens and is leading the change of public companies to adapt their investment strategies toward various digital assets.

Shares of SOL Strategies (HODL), a digital asset firm listed in Toronto, surged after the announcement of securing a convertible note facility up to $500 million aimed at enhancing its focus on the Solana network. The funds will solely be allocated to purchasing SOL tokens and expanding the company’s blockchain validator operations, as stated in a recent release. The stock peaked at C$2.16, marking an 18% gain before settling back slightly, still maintaining a 7% increase from the previous day.

“This is the largest financing facility of its kind in the Solana ecosystem—and the first directly tied to staking yield,” said CEO Leah Wald. “Every dollar deployed is immediately yield-generating and adds value to both our balance sheet and our validator operations. This model is not only innovative but also highly scalable.”

The initial tranche of $20 million, executed with New York-based private equity firm ATW Partners, is set to close by May 1. Interest on the convertible notes will be paid using SOL, calculated up to 85% based on the staking yield from SOL staked through the firm’s validators.

Additionally, the company is contemplating a move to the Nasdaq exchange in the United States for broader investor access. This consideration comes after analogous plans from Galaxy Digital, a Canada-listed firm that also aims for a Nasdaq debut next month after receiving regulatory approval.

SOL Strategies, led by Leah Wald, a co-founder of Valkyrie Investments, is at the forefront of adapting traditional investment strategies, including those pioneered by Michael Saylor, into alternative cryptocurrencies. Recently, the firm held 267,151 SOL tokens, translating to over $40 million at current values and bought three validator businesses last month, raising their total SOL stake to 3,351,617 SOL, which is over $500 million.

U.S.-listed real estate company Janover, now recognized as DeFi Development Corp, has recently emulated SOL Strategies’ approach to establishing a Solana-focused crypto treasury and validator operation.