Leah Wald's Sol Strategies likely to reinvest FTX windfall in Solana ecosystem
Quick Take
- The company formerly known as Cypherpunk Holdings is likely to buy more Solana tokens with capital recovered from FTX.
- HODL is up over 13% over the past five days.
Sol Strategies (ticker: HODL), the recently rebranded holding company formerly known as Cypherpunk Holdings, said Thursday it has purchased more Solana tokens and recovered capital from FTX.
The Canada-based investing firm received $825,450 Canadian dollars (approximately $600,000) worth of USDC from Lucy Labs Flagship Offshore Fund SPC, which previously held funds on the now-defunct exchange.
SOL Strategies, which had written off its investment at the time of FTX’s bankruptcy, ultimately earned a 122% premium on its $500,000 investment in Lucy Labs. The firm will likely reinvest this windfall pursuing its recent strategy of buying and staking SOL.
“Combined with our growing SOL holdings, the recovery of the FTX claim allows us to continue supporting the Solana ecosystem. These funds further reinforce our ability to sustain current initiatives and maintain a strong operational foundation," CEO Leah Wald told The Block in an email.
The company has increased its SOL holdings to more than 100,000 tokens, worth $21.6 million CAD, bought at an average price of $142 CAD. It has generated gross revenue of $282,910 since the then called company CypherPunk began staking on the Solana network in the second quarter of 2024.
"The recovery of the claim is a welcome addition to our available funds and underscores Sol Strategies' commitment to maintaining a solid financial foundation," Wald said in Thursday's press release. "Coupled with our increased SOL holdings, these recovered assets are expected to be allocated within the Solana ecosystem."
In a previous interview with The Block, Wald described the publicly traded firm’s strategy as similar to that of a bitcoin miner, which earns revenues by securing the Bitcoin network.
“No other companies are running a validator, and none of the staked-SOL ETPs for North America are approved,” Wald said at the time.
HODL is up over 13% over the past five days.
EDITOR'S NOTE (OCT. 4, 2024): Adds statement from Leah Wald. Clarifies Sol Strategies' investments are priced in CAD.
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