Publicly traded holding company Sol Strategies (ticker HODL) has drawn down $4 million of a $25 million credit facility to invest in SOL tokens and its staking business.
The firm pivoted midway through 2024 to focus on the Solana ecosystem.

Sol Strategies, a publicly traded holding company (tickers: CYFRF, HODL.CN), is investing 25 million Canadian dollars in the Solana ecosystem through an unsecured credit facility, the company announced Monday.

The move is the latest part of the Toronto-based company’s effort to become one of the largest Solana stakers and ecosystem participants after rebranding from Cypherpunk Holdings, which took a broader approach to investing in the crypto industry.

In July, Cypherpunk Holdings hired Leah Wald to serve as chief executive as it began to dial in its focus in the Solana ecosystem.

The company has sold off a number of its investments, including most notably an equity stake in Animoca Brands, which previously represented its second-largest holding after bitcoin, and has invested directly in SOL tokens and Solana validators. The rebranding to Sol Strategies four months ago was a seeming nod to MicroStrategy, which has gone from a business consulting firm to a bitcoin holding company.

As of Dec. 31, 2024, Sol Strategies has staked over 1.5 million SOL tokens (worth about CAD$450 million) across its validator operations. This includes over 140,000 SOL owned by the firm.

In this sense, HODL acts as a way to gain exposure to Solana in the same way that bitcoin mining stocks like MARA, Riot or Core Scientific are often treated as bitcoin plays by analysts, Wald has previously said to The Block.

In December, the company announced it was looking to list on the Nasdaq. HODL saw an over 2,000% price increase between the date Wald joined as CEO and the end of last year.

According to the announcement, the unsecured, revolving credit facility will bear interest at a rate of 5% per annum, accrued daily.

"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,” Wald said in a statement.

Sol Strategies has drawn down $4 million of the principal amount and plans to use “the rest for large-scale purchases of Solana tokens to support its staking operations and acquisitions.” It has until Jan. 6, 2027 to utilize the full facility, according to the statement.

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About Author

Daniel Kuhn is a Senior Journalist and Editor at The Block, where he covers the crypto industry with a particular focus on tech. He previously served as deputy managing editor of opinion/features at CoinDesk. He first appeared in print in Financial Planning, a trade publication magazine. Before journalism, he studied philosophy as an undergrad, English literature in graduate school and business and economic reporting at an NYU professional program. You can connect with him on Twitter and Telegram @danielgkuhn or find him on Urbit as ~dorrys-lonreb.